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XPENG Inc. and the Volkswagen Group have formalized a new phase of cooperation by entering into a framework agreement to develop an advanced Electrical/Electronic architecture (E/E Architecture) for Volkswagen’s electric vehicles (EVs) in China. This agreement aligns with Volkswagen’s strategy to enhance its EV offerings in the Chinese market by incorporating XPENG’s cutting-edge E/E Architecture, which is renowned for its integration capabilities and cost efficiency.
Key Highlights of the Agreement:
- Joint Development: XPENG and the Volkswagen Group will co-develop the next-generation E/E Architecture.
- Integration with Volkswagen’s CMP: This architecture will be integrated into Volkswagen’s China Main Platform.
- Deployment by 2026: The new E/E Architecture is slated to be featured in Volkswagen brand EVs manufactured in China starting in 2026.
- Focus on Cost Efficiency: Both companies aim to optimize cost structures and increase the technological competitiveness of their smart EV products.
XPENG’s in-house developed E/E Architecture, which underpins this collaboration, enables the decoupling of software from hardware, allowing for rapid iteration across different platforms. This architecture not only supports high-speed Gigabit Ethernet communications but also includes a high level of integration across electronic control units, which enhances overall vehicle performance and cost-effectiveness.
“The shared passion for technology and innovation brought XPENG and Volkswagen together. Both parties continue to contribute each other’s best to our strategic partnership. The technical collaboration based on our industry-leading E/E Architecture takes our partnership to the next level and on a much larger scale. The collaboration will allow our Smart EV products to be both technologically competitive and cost competitive,” said Mr. Xiaopeng He, Chairman and CEO of XPENG.
See also: XPENG, Volkswagen Forge Strategic Tech Alliance
Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, highlighted the strategic significance of the collaboration, saying, “With our ‘In China, for China’ strategy, we are strengthening the innovative power of the Volkswagen Group in China. By expanding our partnership with XPENG and consistently integrating with China’s industrial ecosystem, we will align our products even faster to the needs of Chinese customers. Both partners bring their strengths to the table. This increases efficiency, optimises cost structures and accelerates the speed of development. High cost-effectiveness and a fast pace of development are crucial for our competitiveness in China’s dynamic market environment. Through such efforts, we are taking on a leading role in the age of intelligent connected vehicles.”
About XPENG: XPENG is a leading Chinese Smart EV company, focusing on the technology-driven transformation of EVs to enhance the mobility experience. With headquarters in Guangzhou and offices globally, XPENG produces its vehicles primarily in its plants in Zhaoqing and Guangzhou, Guangdong province.
About Volkswagen Group China: Volkswagen Group, a pioneer in China’s automobile industry since 1978, operates through various subsidiaries including SAIC Volkswagen and FAW-Volkswagen. In 2023, Volkswagen Group China and its partners delivered over 3.23 million vehicles in China and Hong Kong.
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