Volkswagen is creating a new platform with the Chinese Xpeng: it will produce electric cars in China with a lower cost of 40%.

Volkswagen begins to benefit from Chinese partner Xpeng. The German company has announced that it has created a new architecture, the Chinese Electrical Architecture (CEA) for electric and smart cars with the Chinese manufacturer, in which the Wolfsburg giant bought a 5% stake last year for around 700 million.

Four electric cars of the VW brand from 2026

The new architecture developed by Xpeng should help Volkswagen offer affordable electric cars in China, which is the German company’s biggest market. According to what was announced, four electric cars of the Volkswagen brand manufactured in China will be integrated into the new one. platform starting in 2026. “High profitability and rapid development are important for our competitiveness in the dynamic Chinese market environment”, explained the head of Volkswagen China, Ralf Brandstatter.

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New design reduces costs by 40%

By using the new platform the costs can be reduced by 40% compared to the developed Meb platform Germany, reduce the number of control units. China Electric’s new architecture uses a supercomputer and circuit design to control all electronic devices to achieve functions such as driving freely. “This is a decisive step in our development intelligent cars relationship specific to China and in accelerating our strong strategy of “In China, for China”».

The German company wants to regain the market in China

Volkswagen, which faces growing competition of domestic producers, wants to regain lost market shares in China. By partnering with Xpeng, the automakers said their economies of scale and integration across platforms and software will reduce costs and shorten development time by 30%. (All rights reserved)