XPeng and VW Accelerate E/E Architecture Development at Record Pace

XPeng and Volkswagen have accelerated their joint development of the E/E architecture, reaching key milestones at a rapid pace. The companies are working together to expand the application of the architecture, with a focus on electric vehicles.

XPeng Inc. and the Volkswagen Group have significantly advanced their joint development of the Electrical/Electronic (E/E) architecture, reaching key milestones at a rapid pace, as announced on August 15, 2025. This collaboration, which began with a Master Agreement on E/E Architecture Technical Collaboration signed on July 22, 2024, has now expanded to include a broader scope of application within the Volkswagen Group.

The newly signed Agreement on Expanding E/E Architecture Technical Collaboration marks a significant milestone in the long-term strategic partnership between XPENG and Volkswagen Group. The E/E architecture, initially developed for electric vehicle (EV) platforms, will now be integrated into Volkswagen's internal combustion engine (ICE) and plug-in hybrid electric vehicle (PHEV) platforms in China, significantly expanding the scope of strategic technical collaboration to broader markets [1].

This expanded technical collaboration aims to enhance Volkswagen's software-defined vehicle strategy, allowing for faster software iterations and over-the-air (OTA) updates, thereby reducing the vehicle development cycle. The joint research and development teams have designed and validated the E/E architecture to be adaptable to both EV and non-EV platforms, demonstrating the synergy and strategic value of the partnership [2].

The agreement will also significantly increase the scale of models equipped with the industry-leading E/E architecture in the Chinese market, enabling Volkswagen to achieve platform-driven economies of scale and enhanced product competitiveness. This move underscores the mutual trust and commitment to continuous innovation in smart electric vehicle technologies between XPENG and Volkswagen Group [1].

"Expanding the E/E Architecture Technical Collaboration marks a significant milestone in our ongoing strategic collaboration," said Mr. Xiaopeng He, Chairman and CEO of XPENG. "This agreement not only underscores our mutual trust in the long-term partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies."

Ralf Brandstätter, CEO of Volkswagen Group China and Member of the Board of Management of Volkswagen AG for China, added, "By extending the E/E architecture to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector. 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."

The expanded technical collaboration will reinforce Volkswagen's economic resilience, create capacity for targeted investment in cutting-edge innovations, and advance its journey toward fully connected, intelligent electric mobility [1].

References:
[1] XPENG and the Volkswagen Group Announce Entry into Agreement on Expanding E/E Architecture Technical Collaboration. (2025, August 15). Retrieved from https://www.globenewswire.com/news-release/2025/08/15/3134027/0/en/XPENG-and-the-Volkswagen-Group-Announce-Entry-into-Agreement-on-Expanding-E-E-Architecture-Technical-Collaboration.html
[2] XPeng and Volkswagen Accelerate E/E Architecture Development. (2025, August 15). Retrieved from https://seekingalpha.com/news/4485878-xpeng-and-volkswagen-accelerate-ee-architecture-development