XPeng, Volkswagen Plan to Launch Two Mid-Size EVs in 2026

What’s new: Chinese electric vehicle (EV) startup XPeng Inc. and German auto giant Volkswagen AG will jointly develop two new mid-size EVs with a planned rollout in 2026, the latter said Thursday.

The first of the two Volkswagen-branded EVs for the China market will be an SUV, according to the company in a press release.

The updated details for the two vehicles are part of a master agreement between the companies announced Thursday, following a deal inked in July. The companies will launch a joint sourcing program for common vehicle and platform parts to “optimize cost structures,” according to Volkswagen.