XPeng Motors and Volkswagen Group have announced an expansion of their existing strategic partnership on electronic and electrical (E/E) architecture technology. The updated agreement will see the jointly developed industry-leading E/E architecture integrated not only into Volkswagen’s pure electric vehicle (BEV) platforms in China, but also into its internal combustion engine (ICE) and plug-in hybrid electric vehicle (PHEV) platforms for the Chinese market.
The original agreement that was signed last year focused on developing a new E/E architecture for Volkswagen’s EV models. With the expanded deal, both companies have validated a platform-based solution called Centralized Electronic Architecture (CEA) that allows the same architecture to be deployed across multiple powertrains, including EVs, ICEs, and PHEVs, this streamlining development and boosting economies of scale.
Volkswagen says this move will accelerate its transition towards software-defined vehicles, enabling faster over-the-air (OTA) software updates and reducing development cycles. It also strengthens its ability to compete in China’s fast-evolving automotive market by enhancing both cost efficiency and product attractiveness.
XPeng Chairman and CEO He Xiaopeng called the agreement “another important milestone” and a testament to the “deep mutual trust” between the two automakers. He added that it reflects their shared determination to innovate in intelligent EV core technologies and create value together.
Ralf Brandstätter, Volkswagen AG Board Member for China and CEO of Volkswagen Group China, emphasised that advanced technology should not be limited to a single powertrain type. Extending the Centralized Electronic Architecture (CEA) to ICE models, he said, will help the group maintain its leadership in traditional segments while freeing up resources for targeted innovation investment.
“At the same time, in China’s highly competitive automotive market, we continue to optimize our cost structure to ensure we always offer customers highly attractive model choices. This will create stronger strategic depth, give us more room for targeted investments in cutting-edge innovation, and help us accelerate towards a fully connected, intelligent electric future,” he added.