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XPENG and Volkswagen Group have signed a Master Agreement to co-develop cutting-edge Electrical/Electronic (E/E) Architecture for locally produced vehicles in China. This collaboration is set to produce the first vehicle with this architecture within 24 months and aims to explore further opportunities for expansion.
Key Highlights
- Master Agreement solidifies the commitment to jointly develop E/E Architecture.
- First vehicle with the new architecture to start production in approximately 24 months.
- Establishment of Project House in Guangzhou and Hefei to facilitate collaboration.
- Exploration of further collaboration opportunities to expand the usage of the developed E/E Architecture.
Under the E/E Architecture collaboration, XPENG and Volkswagen have established Project Houses in Guangzhou and Hefei. These facilities will enable engineers from both companies to work closely together and accelerate the development process. This close technical collaboration aims to produce the first vehicle with the jointly developed E/E Architecture within approximately 24 months. This demonstrates the extensive trust and commitment between Volkswagen and XPENG.
Additionally, XPENG and Volkswagen will actively explore further collaboration opportunities to expand the usage of the developed E/E Architecture. Both parties recognize the potential to replicate this successful collaboration model and further enhance their strategic partnership.
“The E/E Architecture collaboration marks the third major milestone we achieved within a year in our long-term strategic partnership with Volkswagen Group. With the trust built up between Volkswagen and XPENG as well as the dedication by engineers from both parties, we have been executing our joint projects swiftly and realized significant synergies. I look forward to broadening our technology collaboration and win-win strategic partnership,” said Mr. Xiaopeng He, Chairman and CEO of XPENG.
Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, added: “The rapid progress in the close cooperation between the Volkswagen Group and XPENG underlines the great potential of this partnership. With the joint development of a highly modern E/E Architecture, in which both partners contribute their technological expertise, we are now taking the next step together. For us at Volkswagen, this project is also the next milestone in the consistent implementation of our ‘in China for China’ strategy – with a clear focus on Chinese customers and technological innovations. From 2026, all all-electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture.”
About XPENG
XPENG is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs appealing to technology-savvy middle-class consumers. The company’s mission is to drive Smart EV transformation with technology, shaping the future mobility experience. XPENG develops its full-stack advanced driver-assistance system technology, in-car intelligent operating system, and core vehicle systems, including the powertrain and E/E Architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego, and Amsterdam. The company’s Smart EVs are primarily manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province.
About Volkswagen Group China
Volkswagen Group is one of the earliest and most successful international partners in China’s automobile industry. The company’s engagement with Chinese counterparts began in 1978, leading to the establishment of joint ventures like SAIC Volkswagen Corporation Ltd. in 1984 and FAW-Volkswagen Corporation Ltd. in 1991. Volkswagen Group China focuses on the production, sales, and services of whole vehicles and parts, including engines and transmissions. The Group’s auto brands, such as Volkswagen Passenger Cars, Audi, ŠKODA, Porsche, Bentley, Lamborghini, and Ducati, have a significant presence in China. In 2023, Volkswagen Group China, together with its Chinese joint venture partners, delivered over 3.23 million vehicles to customers in the Chinese mainland and Hong Kong, employing over 90,000 people by the end of the year.
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