.Best Volkswagen and Xpeng execs posture at the German automaker's launch celebration in Beijing, China, on Aug. 24, 2024. Bloomberg|Bloomberg|Getty ImagesBEIJING u00e2 $ " Thousands of Volkswagen workers are actually hanging around at Xpeng as the German vehicle giant as well as Chinese startup work to produce electric automobiles for China, Xpeng co-president Brian Gu said to CNBC on Monday.He likewise mentioned the relationship is going to assist Xpeng's international ambitions.Volkswagen in July 2023 declared a $700 million financial investment in to Xpeng to jointly develop two power vehicles for shipping in China in 2026. The autos will definitely be based upon the system for Xpeng's G9, a midsize electric crossover SUV.The German provider's workers are actually investing more opportunity at Xpeng's offices than the start-up's are at Volkswagen's, Gu stated. They are actually finding out about the startup's technology.Xpeng's driver-assist modern technology is commonly looked at one of the most ideal presently offered in China. Tesla's model, marketed as "complete self-driving," isn't completely easily accessible in China.The German car manufacturer did certainly not instantly react to a request for comment.Gu emphasized the anticipated automobiles will certainly be actually "incredibly different" coming from those that currently offered through Xpeng or even Volkswagen. He said the automobiles would likely have "much better array, billing, much smarter steering, even more attribute luxurious innovation, for the same rate, potentially." China is actually a crucial market for Volkswagen. The German automaker supplied 3.2 million cars in China last year, much more than the 3.1 million in each of Western Europe.But like a lot of standard overseas car titans, Volkswagen has actually also struggled in China as the nearby market rapidly shifts towards battery-only and crossbreed powered cars. The company's China deliveries plunged by 19.3% in the fourth ended June coming from a year ago.While Xpeng observed second-quarter shipments grow through 30% year-on-year to much more than 30,200 vehicles, the start-up lags behind most of its own Chinese rivals.Looking overseasThe provider has, meanwhile, drove overseas, as have Mandarin electricity car providers BYD and also Nio. In the 2nd fourth, Xpeng stated its own international purchases went beyond 10% of overall profits for the very first time.Xpeng CEO and also Owner He Xiaopeng said to Bloomberg last week that the Mandarin car manufacturer remains in preparatory stages of selecting a site in the European Union as part of potential plans for localizing creation. The job interview was actually posted Tuesday.Asked for comment, Xpeng stated it shared in the course of the Beijing automobile display in the springtime that the firm is actually looking at the option of abroad production.Gu separately told reporters Monday that localization attempts in Southeast Asia would likely happen earlier than any kind of in Europe.He said the 10-year-old startup aims to reach out to a minimum of 40 countries as well as regions by the end of this particular year, up coming from around 30 therefore far.Xpeng introduced in Thailand, Hong Kong as well as Macao earlier this month. Gu pointed out that this week, the startup is actually launching in Malaysia, and also formally revealing its own admittance in to Singapore, where Xpeng possesses a pop-up store.The start-up also plans to enter into Australia, New Zealand, the U.K. as well as Ireland, Gu said.Supply chain partnershipSpeaking on how the Mandarin firm is gaining from its own German companion, Gu stated that Xpeng staff see Volkswagen workplaces in the area of Hefei, the capital of China's Anhui Province, for style and also technology, as well as Beijing for source establishment discussions.The two companies in February announced that they had entered into a "joint sourcing course" for automobile parts.Xpeng has bought robotics since 2020 and also is now focused on humanlike robotics that can manage several duties in manufacturing plants, Gu informed CNBC. He suggested Xpeng will likely uncover additional information soon.But when asked whether that humanoid integration featured Volkswagen-related source chains, he stated it was prematurely for such implementation.u00e2 $" CNBC's Sonia Heng contributed to this report.