A Reuters report on October 20, 2026, said the partnership between Volkswagen and Chinese electric-vehicle maker Xpeng is facing significant challenges. The first vehicle from the alliance, the ID. UNYX 08 electric SUV, launched in April and has averaged only 267 sales a month since then. Volkswagen had initially targeted 3,622 monthly sales for the year.
The weak sales highlight Volkswagen’s difficulties in China, the world’s largest auto market, where it has been losing ground to local competitors. Based on a review of company documents and interviews, the report suggests Volkswagen expected the partnership to deliver a quicker turnaround than its product, pricing and sales strategy could support. The ID. UNYX 08 has struggled against newer, more software-focused electric SUVs from Chinese brands.