Through Volkswagen's partnership with Xpeng and Audi's with SAIC, Volkswagen is strengthening its position in the Chinese auto market

Along with announcing its partnership with Xpeng, German auto giant Volkswagen also announced that its premium car brand Audi has entered into a partnership with SAIC Group. Audi and its Chinese joint venture partner SAIC have signed a strategic memorandum to further deepen their existing cooperation.

The two companies will expand their electric vehicle (EV) portfolio for the premium market through co-development, the statement said. As a first step in the plan, Audi will enter segments not previously covered in China by launching new EV models.

The co-developed EV models will be equipped with state-of-the-art hardware and software to provide Chinese customers with an intuitive, connected digital experience, Volkswagen said, adding that all parties will contribute their core competencies in the development process.

Through the partnership between Volkswagen and Xpeng, and Audi and SAIC, Volkswagen is strengthening its position in the Chinese automotive market and continuing to advance its electrification strategy in China.