XPENG, Volkswagen expand joint R&D of advanced E/E architecture to ICE vehicle, PHEV platforms in China

Shanghai (Gasgoo)- On August 15, XPENG and Volkswagen Group announced an expansion of their strategic cooperation on electronic and electrical (E/E) architecture technology. The two companies had signed a joint development agreement on July 22, 2024, and have since advanced the project at a fast speed, reaching a key milestone. Building on their shared vision to broaden the application of the architecture across multiple vehicle platforms and powertrain types, the partners have now signed an extended cooperation agreement.

Photo credit: XPENG

The new agreement means that the jointly developed E/E architecture — initially intended for Volkswagen's battery electric vehicle (BEV) platforms in China — will also be rolled out to the group's internal combustion engine (ICE) vehicle and plug-in hybrid electric vehicle (PHEV) platforms in the country, significantly widening the scope of the collaboration.

Volkswagen says the move will help accelerate its software-defined vehicle strategy, boosting the global competitiveness of its product lineup. Standardizing the E/E architecture across platforms will enable faster software iteration, over-the-air updates, and considerably shorter development cycles.

Engineering teams from both companies followed a strict platformization design approach, validating that the architecture built for BEV platforms could also be deployed on ICE vehicle and PHEV platforms. This achievement marks a significant outcome of their joint R&D efforts and underscores the strategic value of their long-term partnership. It is expected to substantially increase the number of Volkswagen vehicles in China equipped with this advanced E/E architecture, delivering economies of scale and stronger product competitiveness.

Ralf Brandstätter, CEO of Volkswagen Group China and Member of the Board of Management of Volkswagen AG for China, stressed that advanced technologies should not be confined to a single powertrain type. He said extending the CEA (China Electronic Architecture) to the group's robust ICE vehicle portfolio will further consolidate Volkswagen's technology leadership in traditional vehicle segments, while cost optimization will help maintain attractive offerings in China's fiercely competitive market. This, he added, will create greater strategic depth and enable targeted investments in innovation, supporting Volkswagen's transition toward a fully connected, intelligent electric future.