Volkswagen is shopping for a stake in a Chinese language electrical automotive producer – Muricas News

German carmaker Volkswagen plans to purchase a stake in Chinese language electrical automotive maker XPENG to spice up sagging gross sales on the earth’s largest automotive market.

VW introduced on Wednesday that it plans to purchase slightly below 5 p.c of XPENG for $700 million and work with them to develop two mid-range electrical automotive fashions for the Chinese language market.

The 2 corporations have but to finalize the small print of the settlement and acquire regulatory permits, they usually plan to launch the brand new fashions available on the market in 2026.

The VW group has to date recorded solely modest outcomes on the Chinese language electrical automotive market and delivered 62,400 of them within the first half of the yr, 1.6 p.c lower than in the identical interval final yr. In the entire yr, they deliberate to ship round 200,000.

When fossil fuel-powered automobiles are included, shipments fell 1.2 p.c, a enterprise report launched Thursday confirmed.

When all markets are included, they delivered 4.37 million autos, 12.8 p.c greater than in the identical interval final yr.

On the identical time, they lowered the estimate of deliveries for the entire yr, from 9 to 9.5 million to 9 million, because of the unsure macroeconomic scenario.

Within the first half of the yr, their earnings jumped by 18 p.c, to 156.3 billion euros, pushed by considerably increased gross sales in Europe and North America and costs.

Revenue after taxation fell by 20 p.c, to eight.52 billion euros.