Volkswagen Has A China Problem. And It Can’t Fix It Alone

• VW EV sales in China plunged 34% in the first half of 2025, so it’s turning to local partners to help it develop more appealing China-specific models.
• The new VW ID. Unyx 08 is co-developed with Xpeng and shares its 800-volt platform with the G9 SUV.
• It’s one of VW’s new EVs made “in China for China” EVs. The company expects to have 30 China-specific models by 2030. 

Volkswagen’s electric vehicles sales are plummeting in China, but it hopes a new EV co-developed with Xpeng will turn its fortunes around. The Touareg-sized VW ID. Unyx 08 is the result of the partnership, and it looks like no other vehicle in the manufacturer’s global portfolio. It’s part of the manufacturer’s made “in China for China” strategy, and was previewed by the ID. Evo design study at the Shanghai motor show in April.

Two other concepts were shown this year in Shanghai, and all three of them were from different Chinese joint ventures. The ID. Unyx 08 will be built by Volkswagen Anhui, and it’s the third model in the ID. Unyx series after the 06 crossover and 07 sedan, both of which are fully electric. Production of the 08 is set to start in 2026.

The 08 will be available with two sizes of lithium-iron-phosphate (LFP) battery pack, and offer single- and dual-motor configurations. It’ll have a maximum CLTC range of over 700 km (434 miles). VW says it’s the brand’s smartest EV to date, too, with the necessary automated driving tech to be summoned to pick up its driver from a parking lot, on top of the usual semi-autonomous driving features that other VW models offer.

The 08 was created with help from Xpeng. Volkswagen acquired a 5% stake in the Chinese carmaker in 2023 to help it quickly bring more EVs to market. Those cars weren’t built on MEB or any other VW group platform, but the companies are now working together more closely. The new 08 shares its 800-volt underpinnings with the Xpeng G9. The platform has a peak charging power rating of over 300 kilowatts, which in the G9 is good for a 10% to 80% charge time of around 20 minutes.

In the first six months of 2025, Volkswagen’s EV sales in China dropped by 34%, with deliveries of just 59,400 vehicles compared to 90,600 in 2024. Those 2024 numbers already represented a drop; After all, as recently as 2023 VW was still China’s biggest automaker by sales. So 2025 is the second year of declining sales for VW, which is why it’s turning to its joint ventures and Chinese partners to try to launch vehicles that local buyers will actually consider.

The other two concepts shown this year in Shanghai will also become production models. The largest is the ID. Era study from SAIC Volkswagen is a full-size range-extender SUV that can drive 300 km (186 miles) in electric mode and over 1,000 km (620 miles) on a full tank. The ID. Aura concept previews a sleek sedan, which will be manufactured through the FAW-Volkswagen joint venture. It’s the first vehicle on VW’s new Compact Main Platform (CMP).

This new China-specific architecture will feature the brand’s first AI-powered Advanced Driver Assistance System (ADAS), introducing a new feature called Urban Navigate on Autopilot, with eventual promises to offer full Level 3 automated driving.

Across the entire VW group, the goal is to offer around 30 electric models in China by 2030, and most of them will be specific to the market, meaning they will be developed and built with the help of local partners. Its sales may be declining, but Volkswagen isn’t backing down just yet.