An ID.UNYX 08, the first model co-developed by Volkswagen Group China and XPENG, rolls off the production line in Hehei, East China's Anhui Province. (Photo: Volkswagen Group)
Germany's Volkswagen Group announced on Friday that its first model jointly developed with China's XPENG has officially entered production in Hefei, capital city of East China's Anhui Province. This medium-to-large electric SUV is expected to launch in China in the first half of 2026, and it marks another milestone in China-Germany cooperation in the automotive sector.
It's the latest example of a German automaker integrating with China's development strategy and strengthening its presence in the domestic market for mutual benefit, a Chinese industry expert said, adding that it also reflects the bilateral cooperation potential highlighted during German Chancellor Friedrich Merz's visit to China in February.
As an important step in Volkswagen's "In China, For China" strategy, the ID.UNYX 08 is the first model jointly developed with local partner XPENG. It has taken only 24 months since the two firms' signing of the joint development and technology cooperation agreement to reach mass production, according to a press release the German carmaker shared with the Global Times on Friday.
The new model is equipped with locally developed cutting-edge technologies, including 800-volt ultra-fast charging, an L2 Advanced Driver Assistance System, and the ability to continuously upgrade the vehicle with over-the-air updates, according to the company.
"Three years ago, we launched our strong China strategy. It is now unleashing its full power... The car was developed in China for China, with German engineering and local cutting-edge technology," Volkswagen CEO Oliver Blume was quoted as saying on the company's official website.
More next-generation products and technologies will follow in 2026, with over 20 new NEV models scheduled for launch throughout the year, the company said.
The launch of the new model demonstrates the German carmaker's deeper commitment to the Chinese market, Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times. It also highlights the growing opportunities in the electric vehicle (EV) sector, Cui noted.
In 2025, China accounted for 68.4 percent of the world's new-energy vehicle (NEV) passenger market, and Chinese carmakers' share of the global automotive market reached 35.6 percent, according to the CPCA.
Another key factor enabling such cooperation is the strong complementarity between Chinese and German carmakers. Cui said that as two major players in the global automotive industry, China and Germany have complementary strengths in technological research and development, manufacturing and market resources, creating significant potential for deeper collaboration.
During Merz's visit to China in February, the automotive industry was highlighted as one of the most important areas for bilateral cooperation.
During the visit, Merz took a special test ride in the new Mercedes-Benz S-Class in Beijing, personally experiencing the L2 Urban and Highway Navigation System, jointly developed by the German auto company and Chinese technology firm Momenta.
Cooperation and exchanges between the Chinese and German automotive industries have been increasing recently.
In November last year, the 9th China-Germany Automotive Conference was held in Changchun, Northeast China's Jilin Province, with more than 60 German automotive representatives attending. Building on the outcomes of the industry conference, the 10th China-Germany Automotive Conference is scheduled to take place on October 30, 2026 in Wolfsburg, Germany, focusing on innovative cooperation within the China-Germany automotive industry chain. This is expected to play an active role in further building the consensus on open collaboration, the Global Times learned from the Investment Promotion Agency of China's Ministry of Commerce.
"From EVs to autonomous driving, Chinese companies are advancing rapidly across multiple fields. Partnering with them allows German businesses to leverage these technological gains and secure a foothold in China's vast market, while German engineering expertise helps enhance product quality and standards, supporting Chinese automakers in their global expansion," Cui said.
More importantly, strengthened bilateral cooperation in the automotive sector not only boosts bilateral relations but also serves as a model of sustainable, rules-based collaboration, setting an example for China, the EU and beyond, the expert said.