The new model is part of Volkswagen’s “in China, for China” strategy, which focuses on reducing development times and producing vehicles tailored to Chinese consumers. The German automaker is competing with major domestic manufacturers including BYD and Geely.
The partnership with Xpeng is a key part of Volkswagen’s efforts to strengthen its position in China and keep pace with the country’s rapid shift towards electric vehicles. The companies previously launched the ID. UNYX 08 SUV earlier this year.
Volkswagen’s deliveries in China fell 26% to 971,000 vehicles in the first half of 2026, the company said in July, marking their lowest level in 16 years. The automaker said it had been unable to avoid the broader downturn affecting the Chinese market.
Volkswagen’s China chief said this week that the scale of the current market contraction was comparable to the disruption caused by the COVID-19 pandemic.
The company said the ID. UNYX 09 was developed in 24 months, around 30% faster than previous development cycles, using a new architecture designed specifically for the Chinese market.
The mid-to-large-size electric coupe is equipped with batteries supplied by CATL and Xpeng’s VLA intelligent driving assistance system. It will be produced at Volkswagen’s Hefei facility, west of Shanghai, which also manufactures the ID. UNYX 08.
The vehicle has a presale starting price of 199,900 yuan ($29,785) and is expected to officially launch at the end of October.
Chinese EV manufacturers continue to gain ground against international brands, putting further pressure on Volkswagen to expand its locally tailored lineup. The company plans to introduce more than 20 battery-electric and plug-in hybrid models in China this year.
Volkswagen began working with Xpeng in 2023, when it acquired a 5% stake in the Chinese automaker.
Xpeng is also seeking opportunities to supply its technology to other international automakers, Reuters reported earlier this month.
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