will introduce EVs starting at around $20,000 (140,000 yuan) to win back buyers in its most important market.
Competition in the world’s largest EV market is intensifying as price cuts from market leaders like Tesla and BYD are pressuring other automakers.
BYD already has models below that price point in China. BYD’s Dolphin, starting at about $16,100 (116,800 yuan) and Yuan Plus electric SUV at about $18,500 (134,000 yuan). BYD sold around 30K Dolphin models in May, about 11 times the ID.3.
I doubt VW will play a significant role in the battle. VW’s proposed $20K Chinese models are a joint venture with Xpeng. VW bought the technology for Xpeng’s G9 “Edward” EV platform, which Xpeng has since replaced with a new generation platform (SEPA) that is modular and presumably more efficient to build. The Xpeng SUV based on the old platform has been a failure so far in China.
So as far as I can see, VW is coming out with $20K models in 2026 based on a platform that failed and became obsolete in 2023.
A good deal for Xpeng.
I would refer Xpeng as a EV start up that has not yet turned a profit. They may fail or may succeed.
Xpeng is currently making just over 100,000 EVs after 9 years exporting some to the EU. And Xpeng looks to expand in the EU.
At the same pace of Tesla that was making just over 100,000 EVs after 9 years from when Musk becoming CEO in 2008. And we must remember Tesla did not become profitable until 2021.
Now as to the old Xpeng platforms [p5 & p7]. A year and a half ago they made a favorable impression upon EV reviewers. One felt they were a step above the Tesla model 3 & another one better than the model S.