Volkswagen leans on Xpeng to mount EV comeback in China

SHANGHAI/FRANKFURT, Germany — After falling behind in China’s increasingly electrified auto market, Volkswagen Group is trying to catch up through a partnership with Chinese electric-vehicle maker Xpeng.

This year marks the 40th anniversary of a Volkswagen joint venture with Shanghai’s SAIC Motor. As demand for gasoline vehicles drops off, Volkswagen faces a turning point in which the Chinese side becomes the source of new technology instead of the other way around.