Volkswagen has begun presales in China for the ID. UNYX 09, its second electric vehicle jointly developed with Xpeng, as the German automaker intensifies efforts to counter a deepening downturn in its largest market. The fastback sedan starts at 199,900 yuan ($29,785) and will officially go on sale at the end of October. Volkswagen's China deliveries fell 26% to 971,000 units in the first half of 2026, the company's lowest level in 16 years. The model was developed in 24 months, about 30% faster, on a China-based vehicle architecture. It uses batteries from CATL and Xpeng's VLA intelligent driving assistance system, and will be produced at Volkswagen's Hefei plant. The launch follows the ID. UNYX 08 SUV and forms part of Volkswagen's "in China, for China" campaign. The company plans to introduce more than 20 battery-electric and plug-in hybrid models this year. Volkswagen has held a 5% stake in Xpeng since 2023, while Xpeng plans to license its technology to other foreign automakers, Reuters reported exclusively this month.