Chinese EV maker XPeng Inc. and Volkswagen Group have accelerated the joint development of the industry-leading Electrical/Electronic (E/E) Architecture following the execution of Master Agreement on E/E Architecture Technical Collaboration signed in July 2024. The co-operation with XPENG ties in with the German group’s ‘In China, for China’ strategy as it enables Volkswagen to address market-defining trends in China at an early stage and best leverage the market’s growth dynamics and innovative strength.
Together with XPENG, Volkswagen is introducing the China Electrical Architecture (CEA), a zonal E/E architecture. Jointly developed by experts from XPENG, Volkswagen China Technology Company and CARIAD China, the CEA will ensure the rapid expansion of digital services in the Volkswagen brand’s China-specific vehicles.
Advanced features such as autonomous driving can be seamlessly integrated and, at the same time, thanks to the zonal structure, the number of electronic control units in previous systems can be reduced by up to 30%. As a result, the zonal E/E architecture will be cost-competitive with local offerings.
The new digital network is envisaged to be used in locally produced VW brand electric vehicles from 2026. The move will strengthen Volkswagen’s ‘electric offensive’ and mark the latest decisive step as one of the industry leaders in the age of intelligent connected vehicles.
Based on the shared strategic objective to expand the application scope of the E/E Architecture within the Volkswagen Group and realize cross-platform and cross-powertrain platformization, both companies have now entered into an Agreement on Expanding E/E Architecture Technical Collaboration.
This agreement signifies that the E/E Architecture will be not only integrated into Volkswagen’s electric vehicle platforms, but also deployed across its ICE (Internal Combustion Engine) and PHEV (Plug-in Hybrid Electric Vehicle) platforms in China, thereby significantly expanding the strategic technical collaboration to broader markets.
The Expanded Technical Collaboration will further accelerate the Volkswagen Group’s software-defined vehicle strategy execution and enhance its global competitiveness. Such cross-platform and cross-powertrain platformization of the E/E Architecture will enable the Volkswagen Group to achieve faster software iteration and Over-the-Air (OTA) updates, and significantly shorten vehicle development cycle.
Adhering to rigorous platform-oriented design philosophy, the joint R&D teams have designed and validated that the E/E Architecture developed for electric vehicle platforms can also be adapted to ICE and PHEV platforms. This technical solution represents a major milestone in joint technical collaboration, demonstrating the synergy and strategic value of the long-term partnership between both parties.
The Expanded Technical Collaboration will significantly expand the scale of vehicles equipped with this E/E Architecture in China market, enabling the Volkswagen Group to realize significant platform-driven economies of scale and enhanced product competitiveness.
“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 Ralf Brandstatter, CEO of Volkswagen Group China and Member of the Board of Management of Volkswagen AG for China.
“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,” he said.
