Volkswagen Group plans to introduce a new electric SUV in China next year, developed in partnership with Xpeng, as the German carmaker seeks to regain ground in a market increasingly dominated by local manufacturers such as BYD and Geely.
A press statement cited by the South China Morning Post described the forthcoming model as Volkswagen’s most intelligent vehicle to date.
The move comes as the company’s market share in mainland China has eroded since 2020 amid accelerating EV adoption.
China’s Ministry of Industry and Information Technology has added the fully electric ID. UNYX 08 to its latest catalogue of approved models, clearing it for production.
The vehicle is the first full-size B-segment SUV from Volkswagen Anhui and was developed by Volkswagen Group China Technology Company, the firm’s largest research centre outside Germany.
Volkswagen said the model, to be built with Anhui Jianghuai Automobile Group, is scheduled to reach the market in 2026.
The company has previously announced plans with Xpeng to co-design two EVs for sale in China next year.
“As one of more than 20 NEV models launching in 2026, the ID. UNYX 08 is a key milestone of our ‘In China, for China’ strategy. We’ve entered delivery mode!” Ralf Brandstätter, member of the board of Volkswagen for China, said in a LinkedIn post.
The design phase for the SUV took 30 months, more than 30% faster than typical timelines, according to Volkswagen.
The company said: “Leveraging targeted local partnerships and robust in-house research and development capabilities, Volkswagen Group has fully integrated into China’s automotive ecosystem, enabling it to customise products that meet Chinese customers’ needs at ‘China speed’.”
Volkswagen acquired a 5% stake in Guangzhou-based Xpeng for $700m in 2023.
Xpeng is recognised for its autonomous driving technologies.
The ID. UNYX 08 will offer Level 2++ driver assistance and an AI assistant powered by a large language model, the company said.
In China, most assisted driving systems are designated as Level 2 or L2+, requiring drivers to keep their hands on the steering wheel.
Authorities have not yet permitted Level 3 “hands-off” systems as defined by SAE International.
Built on an 800-volt fast-charging architecture, the SUV has a claimed range of up to 700km per charge and will be Volkswagen’s first mass-produced model in China to adopt this system.
