The emperor has lost his clothing — or rather, the Emperor has fallen from power and is now doing his best to assimilate or face total annihilation. The emperor in question is Volkswagen, which has revised its China strategy by partnering with local electric vehicle makers. The reason is simple: Chinese EV manufacturers now produce some of the most advanced electric vehicles in the world, and Volkswagen simply cannot keep up.

Volkswagen once enjoyed almost imperial status in China, with guaranteed annual sales and seemingly endless profits. But those days are well and truly over. The 88-year-old automotive giant has entered into a joint venture with 10-year-old EV upstart Xpeng, and the ID. Unyx 08 is the first fruit of this newly formed alliance — built on Xpeng’s powertrain and chassis technology, and manufactured exclusively for the Chinese market.

The younger generation Chinese consumer no longer has any brand loyalty to Volkswagen because Chinese automakers have caught up and now overtaken VW by offering better products, premium cars for less than half the price.

The ID. Unyx 08 rides on an 800V electrical platform and will be offered in single- and dual-motor variants. The range-topping AWD model delivers a combined 496 hp (370 kW / 503 PS) and a CLTC range of over 700 km (435 miles). Power comes from a CATL-supplied LFP battery, though exact capacity hasn’t been revealed yet.

Set to go on sale in 2026, the Unyx 08 will be the third model in Volkswagen Anhui’s lineup, joining the ID. Unyx 06 crossover (based on the Cupra Tavascan) and the ID. Unyx 07 sedan. A new electric sedan based on the Xpeng P7 is also on the horizon, reinforcing VW’s growing EV presence in the region.

Volkswagen’s long-term plan is ambitious — 30 new models for China by the end of the decade, 20 of them electrified. The ID. Unyx 08 marks another major step toward that electric future.