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XPeng has formed a significant partnership with Volkswagen, allowing the German automaker to license its VLA 2.0 AI driving technology for worldwide use. This is the first time a major global manufacturer has procured core AI software from a Chinese startup.

The VLA 2.0 system enables electric vehicles to navigate autonomously without digital maps. XPeng plans to expand its international market, targeting one million annual sales by 2030, with over 70% of profits coming from outside China.

The company will hire 8,000 new employees and increase its sales points to 680, focusing on markets like Germany, France, and Norway. The P7+ sedan will soon be available in 25 European countries, with three new models planned for early 2026. Additionally, XPeng is developing humanoid robots and testing flying cars and autonomous taxis, aiming for a fully intelligent transport system.