Volkswagen, Xpeng to expand on E/E architecture collaboration to ICE, plug-in hybrid vehicle platforms

Volkswagen, Xpeng to expand on E/E architecture collaboration to ICE, plug-in hybrid vehicle platforms

Xpeng has announced that it will expand on its agreement with Volkswagen for the expansion of its electric and electronic architecture collaboration to include internal combustion engine and plug-in hybrid vehicle platforms to China, in addition to its work on electric vehicle platforms as stated in the prior framework agreement.

The expanded technical collaboration will further expedite the Volkswagen Group’s software-defined vehicle strategy execution, and this “cross-platform, cross-powertrain platformisation” of the E/E architecture will enable the Volkswagen Group to more quickly achieve software iteration and over-the-air (OTA) updates, and significantly shorten vehicle development cycles, the statement wrote.

The announcement is the latest in the Volkswagen-Xpeng collaboration that began with the German manufacturer group’s announcement in 2023 that it will invest USD700 million (RM3.17 billion at the time) in Xpeng for the joint development of new electrified models for the Chinese market.

In the 2024 announcement, it was announced that the partnership has two models undergoing development, the first of which to be a mid-sized SUV that is to enter production as early as 2026.

Volkswagen, Xpeng to expand on E/E architecture collaboration to ICE, plug-in hybrid vehicle platforms

“The expanded technical collaboration marks a significant milestone in the ongoing strategic collaboration between Xpeng and the Volkswagen Group… This expanded technical collaboration not only underscores the mutual trust in our long-term strategic partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies,” Xpeng chairman and CEO He Xiaopeng said.

“We do not confine technological excellence to a single powertrain type. Our brands are committed to delivering the most advanced solutions for customers in every segment. By extending the China Electronic Architecture to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector,” said CEO of Volkswagen Group China and member of the board of management of Volkswagen AG for China, Ralf Brandstätter.

“At the same time, we are systematically reducing our cost base, enabling us to continue offering highly attractive choices to customers in China’s intensely competitive automotive market. This will reinforce the company’s economic resilience, create capacity for targeted investment in cutting-edge innovations, and advance our journey toward fully connected, intelligent electric mobility,” Brandstätter added.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Maydei on Aug 18, 2025 at 12:48 pm

    Xpeng Malaysia need overhauled,
    it’s not matching to its brand performance at China and Globally,
    Which now VW will fund it kaw kaw for tech supply? .

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