XPeng’s E/E Architecture to Power Volkswagen’s Future Line-up

XPeng and the Volkswagen Group have announced a major step forward in their technology partnership. The two companies are working together on developing advanced electronic and electrical (E/E) architecture, a system that forms the backbone of modern vehicles.

This follows the initial agreement signed in July 2024, and the partnership has now expanded to cover not only electric vehicles but also internal combustion engine (ICE) and plug-in hybrid (PHEV) models in China.

This expansion means Volkswagen will be able to use XPeng’s E/E architecture across a wider range of vehicles. By doing so, the company can roll out software updates more quickly, shorten the time it takes to develop new models, and improve competitiveness in a cost-effective way in a fast-changing market.

The E/E architecture, short for electronic and electrical architecture, is essentially the nervous system of a modern car. It connects hardware and software throughout the vehicle, from driver assistance systems to infotainment, power management and connectivity.

By working with XPeng, Volkswagen gains access to an architecture designed from the ground up for smart EVs. The system is highly flexible and can support different powertrains and also allows for software and hardware standardisation, cutting costs and speeding up development.

The joint research and development teams have already proven that an architecture built for EVs can also be applied to ICE and PHEV platforms. This breakthrough highlights the long-term value of the collaboration and is expected to strengthen Volkswagen’s position in China, the world’s largest car market.

XPeng’s CEO He Xiaopeng said the expanded agreement reflects trust between the two companies and their shared commitment to innovation in smart vehicle technology.

Volkswagen Group China’s CEO Ralf Brandstatter added that extending the architecture to combustion engine models strengthens the company’s technological leadership while allowing it to stay competitive in China as the group transitions toward fully connected and intelligent EVs.