New-energy vehicles charge at a charging station in Changzhou, East China's Jiangsu Province, on September 3, 2023. Volkswagen China announced on Monday forging a partnership with Xpeng, a major Chinese electric vehicle (EV) manufacturer, to jointly build a fast charging network for running EVs in China, The project will feature more than 20,000 self-operated charging piles, covering 420 cities and regions across China. Photo: IC

Volkswagen Group China announced on Monday that it will forge a partnership with XPENG, a major Chinese electric vehicle (EV) manufacturer, to jointly build one of the largest super-fast charging networks for EVs in China. 

The move is expected to enhance Volkswagen's competitiveness in China's EV market and marks a promising direction for cooperation between Chinese and German carmakers as well as European carmakers in general, analysts said.

The cooperation is a sign of the ever-closer partnership between Chinese and international automakers in 2025. The project will feature more than 20,000 self-operated charging piles, covering 420 cities and regions across China. Both companies will be enhancing the charging experience of EV drivers by expanding charging locations, the company said. 

The collaboration was formalized through a memorandum of understanding for strategic collaboration. The charging network will integrate seamlessly with major automakers via mobile apps, according to the company.

China's automobile market has matured rapidly in the past several years, remaining highly attractive for foreign automakers.

Major Japanese and European automakers unveiled new partnerships with Chinese companies in November during the 22nd Guangzhou International Automobile Exhibition, held in South China's Guangdong Province, according to media reports. 

On November 12, Dongfeng Nissan Passenger Vehicle Co announced a partnership with Huawei. The two companies are expected to collaborate on developing a smart car cockpit based on Huawei's HarmonyOS system, according to Dongfeng Nissan's social media account. 

China has been the global front-runner in new-energy vehicle (NEV) production and sales for nine consecutive years, from 2015 to 2023, the Xinhua News Agency reported.

The robust sales performance has continued into 2024, with China's carmakers selling more than 11.26 million NEVs in the first 11 months, a 35.6 percent increase compared to the previous year, according to the China Association of Automobile Manufacturers (CAAM).

China holds immense potential in vehicle consumption. The CAAM estimates that China's total vehicle sales are expected to reach 31.5 million units in 2024, including 13 million NEVs, the China Securities Journal reported.

"Volkswagen partnered with XPENG, recognizing its extensive sales network and established charging infrastructure in China. Leveraging XPENG's resources allows Volkswagen to rapidly expand its charging network, minimizing time and costs," Wu Shuocheng, a veteran automobile industry analyst, told the Global Times on Monday. 

This collaboration is expected to strengthen Volkswagen's competitiveness in China's EV market and offers the potential to apply this experience and technology in Germany and across Europe, he added.

In addition, Wu highlighted the contribution of this project to the adoption of EVs in China, where the expansion of EVs, especially in major cities, depends largely on the availability and density of public charging stations.

The partnership fosters mutual benefits and highlights a promising direction for collaboration between the two countries in relevant sectors. This two-way engagement signifies a new chapter in China-foreign cooperation, providing valuable insights and new opportunities for the global expansion of Chinese automakers, Wu said.

China's NEV sales accounted for almost 70 percent of the world's total between January and November, said Cui Dongshu, secretary general of the China Passenger Car Association.

The share stood at 52 percent in 2021, rising to 63 percent in 2022, 64 percent in 2023 and 69.6 percent in the first 11 months of 2024, reflecting a clear trend of rapid expansion, Cui said. He noted that China's NEV growth has outpaced the global average.