XPeng and Volkswagen to jointly develop new BEV platform for China from 2026

XPeng and Volkswagen Group have announced a collaborative effort to develop a new battery electric vehicle (BEV) platform called the Electrical/Electronic architecture (“E/E Architecture”).

Under the agreement, XPeng and Volkswagen will work together to integrate XPeng’s E/E Architecture into Volkswagen’s China Main Platform (CMP) for Chinese-produced Volkswagen BEVs expected by 2026.

XPeng’s internally developed E/E Architecture forms the foundation of its vertically integrated software and hardware technologies. This architecture allows for the separation of software layers, facilitating rapid software iterations across platforms.

The latest iteration features central computing and domain controller-based architecture, offering a high-performance in-car computing environment at a competitive cost. It also supports efficient data transmission and over-the-air (OTA) updates.

This agreement continues the partnership with both companies. The Guangzhou-headquartered company has an agreement to design two D-segment (known as B-class cars in China) models for Volkswagen in China. Volkswagen also holds a 4.99% stake in XPeng.

Xiaopeng He, chairman and CEO of XPeng, said, “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,”

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, said: “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.”

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