Volkswagen's Xpeng-backed UNYX 08 SUV falls far short of sales targets in China
Volkswagen's first Xpeng-derived model, the ID. UNYX 08 SUV, sold only a few hundred units a month, far below the company's forecast, highlighting its struggle to regain footing in China.
Volkswagen teamed up with Chinese EV maker Xpeng in 2023 to accelerate its comeback in China, yet the alliance's first product, the ID. UNYX 08 SUV, has averaged just 267 units per month from April to August, dramatically missing the 3,622-unit monthly target. The vehicle, priced around $34,260, faces stiff competition from similarly priced Chinese models that offer more advanced technology and have sold tens of thousands of units.
Its distribution relied mainly on the newly created Volkswagen Anhui network rather than the extensive FAW and SAIC joint-venture dealerships, leaving many buyers unaware of the model. While Volkswagen claims the partnership produced a new electric architecture completed in a record 18 months, analysts argue the company's ambitions outstrip its product, pricing and sales-channel capabilities. The disappointing debut reflects a broader crisis: China, once delivering nearly half of Volkswagen's profit, now contributes roughly 10%, prompting the automaker's largest restructuring in its 89-year history.
Why it matters
The poor performance of Volkswagen's Xpeng-based SUV signals deeper challenges for foreign automakers trying to compete in China's fast-moving EV market.
How this story developed
- Sep 1 Germany pushes for deeper Japan partnership to cut chip reliance on China
- Sep 15 German firms have moved to partner with Japanese companies on chip components.
- Sep 21 EU trade commissioner Maroš Šefčovič scheduled a visit to China to discuss the export curbing request.
- Sep 24 Prime Minister Mark Carney said his government has studied the possibility of a US-led military move against Canada, calling it an extreme tail risk, while noting frequent talks with President Donald Trump amid a worsening trade dispute.
- Sep 24 Chinese firms have moved from exploring to setting up joint electric‑car assembly projects in Graz.
- Sep 27 The United States imposed 50 % duties on $28 billion of Canadian imports.
- Oct 5 France and Germany have formally pushed for fast‑acting EU trade tools to counter market distortions.
- Oct 7 EU trade commissioner Maros Sefcovic is set to travel to Beijing for talks on trade frictions.
- Oct 9 President Lai Ching-te will use his National Day speech to stress economic expansion, new welfare measures and Taiwan’s geopolitical stance.
- Oct 10 The European Parliament held the vote on the China‑related resolution.
- Oct 11 Lai now vows to protect freedom and stresses parity in defence as part of his National Day address.
- Oct 11 Citroen showcased an electric reinterpretation of its classic 2CV at the Paris Motor Show, targeting a showroom launch by 2028 to strengthen its EV lineup.
- Oct 15 The price target is now expressed as under £13,000 in Britain.
- Oct 16 EU Trade Commissioner Maroš Šefčovič secured a deal with China to halve hybrid car imports over four years.
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