Volkswagen ID. Unyx 08 flops in China with just 267 monthly sales

Volkswagen's China strategy has hit a fresh obstacle. The ID. Unyx 08, the first model developed together with Xpeng, is averaging just 267 sales a month, according to figures from ThinkerCar. The German carmaker had set a target of 3,622 vehicles a month.

The SUV was supposed to help Volkswagen recover in a market where it has lost considerable ground. The group sold 4.2 million cars in China in 2019, but only 2.69 million last year. The partnership with Xpeng was meant to give the brand a better grasp of local expectations.

A premium SUV that fails to stand out

The ID. Unyx 08 is based on the large Xpeng G9 and borrows its technology to target the premium segment. Its starting price is around €32,000, which looks competitive on paper. It is not enough, however, against local rivals engaged in an aggressive price war.

The Xiaomi YU7 and the Zeekr 7X remain cheaper and more widely available. The YU7 offers a far more advanced sensor suite for assisted driving, while the Zeekr 7X stands out for very fast charging that cuts waiting times. Customers are therefore getting more for less elsewhere.

Distribution is another handicap

The ID. Unyx 08 is sold only through Volkswagen dealerships. The Xiaomi YU7, by contrast, can be found at multi-brand resellers that are easier to reach, which matters to buyers who want a new car quickly.

The result is a sobering one for the German manufacturer. Despite adopting Chinese technology and a locally tailored approach, the model has so far failed to convince buyers, and it does little to ease the pressure on Volkswagen's business in its largest market.