At “China’s speed” towards the smart car: Volkswagen is using XPENG to develop high-performance E/E digital architecture for electric vehicles in China.

At “China’s speed” towards the smart car: Volkswagen is using XPENG to develop high-performance E/E digital architecture for electric vehicles in China.


With the introduction of the new CEA, the Volkswagen brand is further integrating the digital architecture of the locally produced model portfolio. The initial focus is on cars on domestically developed platforms. These include four entry-level models from the Volkswagen brand in the compact segment, which are based on the China Main Platform (CMP). This is being developed by the Volkswagen China Technology Company (VCTC) with a joint venture between SAIC Volkswagen and FAW-Volkswagen. By reducing the complexity of the system and the number of control devices, CEA makes a significant contribution to reducing the cost of the Chinese platform by 40 percent compared to MEB. Cars on the China Main Platform will come to market from 2026 and expand the joint venture portfolio.

CEA will also strengthen the digital version in two Volkswagen brand vehicles developed jointly with XPENG for the mid-range segment. The market launch will be in 2026, starting with the SUV.

Ralf Brandst├Ątter, Member of the Board of Management of Volkswagen AG China, said: “With our ‘In China, for China’ strategy, we are strengthening the innovative strength of the Volkswagen Group in China. By expanding our cooperation with XPENG and the continuous integration of Once in China’s industrial ecosystem, we will align our products more quickly with the needs of Chinese customers The pace of development is critical to our competitiveness in the Chinese market environment. This means we are playing a leading role in the era of intelligent connected cars.”

Xiaopeng He, Chairman and CEO of XPENG, said: “Our shared passion for technology has brought XPENG and Volkswagen together. Both will continue to do their best for our strategic partnership. The technical collaboration on the E/E architecture takes our cooperation into The partnership will enable our smart electric vehicles to be technologically and price competitive.”

VCTC and CARIAD China ensure the rapid integration of new digital technologies into Volkswagen models

CEA is jointly developed by a team of experts from XPENG, VCTC and CARIAD China. This reinforces the software-centric approach and drives high performance. This includes automated driving and next-generation connectivity functions. The partnership ensures the construction of a comprehensive E/E architecture of the zone and zone controllers, mainframe, cloud and backend connectivity, as well as rapid and cost-effective integration into Volkswagen brand vehicles.

The VCTC development, innovation and procurement center is the core of the innovation hub in Hefei. VCTC brings together all development units and decision-making processes for vehicles intended for the Chinese market in China. By the end of this year, more than 3,000 development and procurement experts will be working on the new ICV. CARIAD China, with its more than 1,000 experts, is a software company of Volkswagen Group China. The goal is to significantly shorten development times by up to 30 percent to provide customers with innovative offers faster.

The Volkswagen Group is strengthening in-house development expertise through a strong “China, for China” approach.

The extended cooperation with the Xpeng company for smart cars is tied to the company’s strategy of “In China for China”. This means that Volkswagen can address the trend of determining the market in China at an early stage and make the best use of the growth dynamics and innovative power of the Chinese market. Volkswagen is expanding its in-house development capabilities for e-mobility, digitalization and autonomous driving and is accelerating its decision-making and development processes in the area. To achieve this end, Volkswagen is expanding its location in Hefei into a modern production, development and innovation center and at the same time relies on cooperation with top Chinese companies. Advanced technical localization and strong customer focus is the key for Volkswagen Group China and its joint ventures SAIC Volkswagen, FAW-Volkswagen and Volkswagen Anhui to play a leading role in the new ICV era.