After Volkswagen Group announced the acquisition of 4.99% of shares in Xiaopeng Motors at the end of 2023, every progress in the strategic cooperation between the two sides has been closely monitored.
On February 29th, the cooperation between Xiaopeng Motors and Volkswagen Group was further deepened, and the two sides officially signed a joint development agreement for platform and software strategic technology cooperation (hereinafter referred to as the "Joint Development Agreement").
On that day, Xiaopeng Motors also announced the details of this signing on the Hong Kong Stock Exchange.
Affected by this news, Xiaopeng Motors (09868. HK) opened higher in the morning and rose over 2.2% during the trading session.
An insider from Xiaopeng Motors revealed to Securities Times · e Company reporters that this move is a milestone in the strategic cooperation between the two sides, which will accelerate the joint research and development of two B-class pure electric vehicles.
It is worth mentioning that as an important component of the joint development agreement, Xiaopeng Motors and Volkswagen have also entered into a joint procurement plan for shared components of their respective vehicle models and platforms. This means that in the subsequent joint development process, Xiaopeng Motors will fully benefit from Volkswagen Group's global supply chain system, thereby further reducing the cost of the car manufacturing platform.
For this cooperation, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, stated that the strategic cooperation model between Volkswagen Group and Xiaopeng Motors has no precedent in the automotive industry. Based on a long-term perspective of strategic cooperation, both sides have invested their core advantages and resources into strategic cooperation. Through the joint procurement plan, synergies have begun to be realized.
Volkswagen Group's China Director, Bered, also expressed great optimism about the cost advantage brought by this joint procurement. He stated that China is the world's largest and fastest growing electric vehicle market. To explore highly promising sub markets and gain a leading advantage, speed is crucial. Through cooperation with Xiaopeng Motors, we will shorten the product development cycle, improve efficiency, and optimize the cost structure. In a highly price sensitive market environment, this will significantly enhance the economic competitiveness of the product.
It is reported that through joint procurement and the application of innovative technologies in vehicle design and engineering, the product development cycle of the cooperation between the two parties will be shortened by more than 30%.
Berry also revealed to the media that the two teams of Volkswagen Group and Xiaopeng Motors are currently working at full speed towards a common goal.
According to a research report by CITIC Securities, Xiaopeng has been adhering to the full stack self-development of intelligent driving for many years and has been exploring the mode of technology monetization. Cooperation with Volkswagen will help the company break through in technology monetization. It is expected that the recognition of technology service revenue will not only improve short-term profitability, but also open up the long-term ceiling.