Volkswagen's Xpeng bet struggles as UNYX 08 sales fall far short of targets
Volkswagen's partnership with Xpeng has failed to revive its China business, with the ID. UNYX 08 selling just 267 vehicles a month after launch, far below the 3,622 monthly target. The German automaker's China profits have plunged from nearly 50 per cent of group profits to about 10 per cent, promp
Volkswagen's high-profile partnership with Chinese EV maker Xpeng, touted in 2023 as a shortcut to developing cars tailored for China, is not delivering the results the German automaker had hoped for, according to a Reuters review of previously unreported company documents and interviews with six people familiar with the company.
The alliance's first product, the ID. UNYX 08 electric SUV, sold an average of 267 vehicles a month between its April launch and August, data from automotive consultancy ThinkerCar show. That is a fraction of the 3,622 monthly sales Volkswagen initially aimed to achieve this year, according to company planning documents. The weak debut reflects Volkswagen's struggle to revive its fortunes in China, where it was the top automaker for decades until 2022. China once contributed nearly 50 per cent of Volkswagen's group profits but now accounts for about 10 per cent, a reversal that has forced the company into the biggest restructuring in its 89-year history.
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