On the morning of February 29th, Xiaopeng Motors announced on the Hong Kong Stock Exchange that it had signed a platform and software strategic technology cooperation joint development agreement with Volkswagen Group and entered into a joint procurement plan. Meanwhile, Volkswagen China has announced that Volkswagen and Xiaopeng Motors have signed a technology cooperation agreement to jointly develop two intelligent electric vehicle models. It is understood that the new Volkswagen brand model jointly developed by Volkswagen and Xiaopeng will be put into production in Hefei in 2026.
Bered, the managing director of Volkswagen Group's business in China, stated that through cooperation with Xiaopeng Motors, Volkswagen will shorten the product development cycle, improve efficiency, and optimize cost structure. In a highly price sensitive market environment, this will significantly enhance the economic competitiveness of the product.
Also on the 29th, following the release of many "glory" models such as the Qin, Han and Tang Dynasties, BYD released the "New King Fried Chicken" - the Song PLUS DM-i glory version, the Song PLUS EV glory version, and the Seal DM-i glory version. In response, netizens commented that "killing crazy, lifting the floor".
Deepening cooperation between Volkswagen and Xiaopeng to jointly develop electric vehicles
On February 29th, Xiaopeng Motors announced on the Hong Kong Stock Exchange that it had signed a platform and software strategic technology cooperation joint development agreement with Volkswagen Group and entered into a joint procurement plan. By integrating the scale advantages of both parties and relying on Volkswagen Group's world-class supply chain capabilities, the joint procurement plan aims to reduce platform costs, fully leverage the synergies of strategic cooperation, and enhance the product strength of the B-class pure electric vehicle jointly developed by both parties.
On the same day, Volkswagen China announced that this was an "important milestone" as both sides will integrate their advantageous resources and deeply cultivate the vibrant Chinese market. Both parties jointly develop two intelligent connected vehicle models for the Chinese mid size car market, with the first model being an SUV, further enriching the product portfolio of the Volkswagen brand.
Volkswagen China has stated that through joint development with Xiaopeng Motors, the product launch cycle will be significantly reduced by over 30%. The first two models have been confirmed to be launched in 2026, and the joint procurement plan will optimize the cost structure of both partners.
"China is the largest and fastest growing electric vehicle market in the world. To explore highly promising sub markets and gain leading advantages, speed is crucial. We firmly implement the 'In China, for China' strategy, with the aim of meeting the unique needs of Chinese customers, continuously expanding our local product portfolio, and continuously improving our research and development capabilities," said Bered, the managing director of Volkswagen Group's business in China
Bered stated that through cooperation with Xiaopeng Motors, Volkswagen will shorten the product development cycle, improve efficiency, and optimize the cost structure. In a highly price sensitive market environment, this will significantly enhance the economic competitiveness of the product.
It is understood that after Volkswagen Group announced its strategic partnership with Xiaopeng Motors last year, the two sides quickly completed the signing of this technology cooperation agreement, demonstrating the enormous potential of this cooperation. At present, the two teams are working at full speed towards a common goal, fully leveraging their respective strengths to create intelligent automotive products for customers.
As of the close on the morning of February 29th, Xiaopeng Motors Hong Kong stock was trading at HKD 36 per share, up 3.15%.
BYD goes crazy!
Also on February 29, BYD launched another "Rocket".
On the same day, BYD Auto posted on Weibo that the Song PLUS DM-i Honor Edition costs 129800 to 169800 yuan; The Song PLUS EV Honor Edition costs 149800 to 189800 yuan.
At the same time, BYD also launched the "New King Fried" B-class car, the proud version of Seal DM-i, which was launched at a high price starting from 149800 yuan.
On February 28th, the BYD Hantang Honor Edition was officially launched, with an official guide price starting at 169800 yuan. Specifically, there are four models of the Han EV Honor Edition, priced at 179800 to 249800 yuan; The Han DM-i Honor Edition has a total of 5 models, priced at 169800 to 225800 yuan; The 2024 Han DM-p God of War version has one model, priced at 259800 yuan; The Tang DM-i Honor Edition has a total of four models, priced at 179800 to 219800 yuan.
Recently, BYD has successively released multiple "Honor Edition" models, including the Qin PLUS Honor Edition with a starting price of 79800 yuan and the Destroyer 05 Honor Edition, as well as the Dolphin Honor Edition with a starting price of 99800 yuan.
Regarding this, some netizens commented that "probably all other manufacturers now have a big head when they see the word 'glory'.".
Foreign car companies are promoting new energy and deepening cooperation with Chinese car companies
The "hand in hand" between Volkswagen and Xiaopeng occurred on July 26, 2023, when Volkswagen announced plans to invest $700 million (approximately RMB 5 billion) in Xiaopeng Motors. In December 2023, Volkswagen Group completed its plan to acquire 4.99% of the total issued and outstanding share capital of Xiaopeng Motors.
"The current situation is that many foreign automobile brands are actively seeking cooperation with domestic domestic brands in various aspects, including technology, products, channels, and markets. This is in line with the old saying '30 years in the east, 30 years in the west', and also indicates that China's automobile industry, especially new energy domestic automobile brands of new forces, are moving from independence to self-improvement." Zhang Xinyuan, Secretary General of Co Foundation Think Tank, said in an interview with reporters.
In addition to Volkswagen Group holding hands with Xiaopeng Motors, several European car companies such as Audi and Stellantis are also focusing on the Chinese market, accelerating their new energy transformation process through investment, cooperation, and other means.
In July 2023, Audi also deepened its strategic cooperation with SAIC Group in the field of electric intelligence. SAIC Audi stated that it will adhere to its luxury and differentiation positioning, and create a younger, more progressive, and more personalized Audi brand in China. At present, the intelligent vehicle model jointly developed by SAIC Group and Audi is being prepared, and the existing models are also undergoing technological upgrades.
On October 26, 2023, Stellantis Group and Leapmotor announced their official cooperation. Stellantis Group plans to invest approximately 1.5 billion euros (approximately RMB 11.694 billion) to acquire approximately 20% equity of Leapmotor.
At the same time, Stellantis Group and Leapmotor International will form a joint venture with Leapmotor International in a ratio of 51% to 49%. Except for the Greater China region, the joint venture company has the exclusive right to export and sell to all other markets worldwide, as well as the exclusive right to manufacture Zero Run automotive products locally. According to the Zero Run plan, the first global model C10 of Zero Run will enter the European market through export in the third quarter of 2024.
According to a research report by Ping An Securities, the investment of foreign car companies in new domestic car manufacturing forces is a milestone event in the history of China's automotive industry. China's automotive industry has evolved from the past "market for technology" to "technology for market", and Chinese car companies will also transform from technology input to technology output.
However, as foreign car companies invest and cooperate in the new energy sector, domestic brands will also face certain competition in the field of new energy vehicles. According to a research report by Caixin Securities, the penetration rate of mainstream joint venture brands in new energy has remained below 5% for a long time. In the second half of 2023, as major joint venture brands gradually launch new energy products, the penetration rate of new energy will gradually increase to 6.6%.
According to a research report by the Federal Reserve Securities, multiple joint venture new energy vehicle brands will enter the market in 2024, and domestic brands will face multi-dimensional competition. Against the backdrop of significant price reductions in various aspects of power batteries, there is room for further adjustment in vehicle prices. 2024 may become the year for joint venture brands to accelerate the entry of new energy vehicles, as well as the year for competition among multiple independent brands.