On August 15th, XPeng Motors and Volkswagen Group jointly announced the signing of an agreement to expand their strategic cooperation on electrical and electronic architecture technology. The signing of this expanded cooperation agreement marks that the industry-leading electrical and electronic architecture co-developed by the two parties will not only be integrated into Volkswagen’s pure electric vehicle platforms in the Chinese market but also deployed to Volkswagen’s fuel-powered and plug-in hybrid vehicle platforms in China. Their technological strategic cooperation will thus expand into a broader market.
Volkswagen stated, “Starting from 2027, the CEA (China Electrical Architecture) will cover all fuel-powered models of the Volkswagen brand in China.” Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, commented, “By extending the CEA architecture to the Group’s strong fuel-powered vehicle product matrix, we will further consolidate our technological leadership in the traditional powertrain vehicle market. Meanwhile, in the fiercely competitive Chinese automotive market, we continue to optimize our cost structure.”
This expanded cooperation agreement represents another important milestone in the partnership between the two parties, following the signing of the joint development agreement on July 22, 2024.
On July 26, 2023, Volkswagen Group and XPeng Motors officially announced their collaboration. It was understood that XPeng and Volkswagen signed a long-term technical framework cooperation agreement. In the initial phase of cooperation, the two parties would jointly launch two B-class pure electric vehicles targeting the Chinese market. At the same time, Volkswagen Group announced an investment of approximately $700 million in XPeng Motors, acquiring about 4.99% of XPeng’s shares at a price of $15 per ADS. On February 29, 2024, XPeng Motors announced the signing of a strategic technology cooperation joint development agreement and a joint procurement plan with Volkswagen Group. On April 17, 2024, XPeng Motors and Volkswagen Group reached their third strategic cooperation: XPeng would jointly develop an industry-leading electrical and electronic architecture for Volkswagen’s electric vehicle platforms in the Chinese market. It is expected to be applied to Volkswagen brand electric vehicles produced in China starting from 2026. On the same day, April 17, 2024, the two parties signed a strategic cooperation framework agreement on electrical and electronic architecture technology.
On August 1st, XPeng Motors released its latest delivery results, showing that from January to July 2025, XPeng delivered a total of 233,906 new vehicles, a year-on-year increase of 270%. Among them, 36,717 vehicles were delivered in July, a year-on-year increase of 229%, setting a new monthly delivery record.
XPeng Motors’ ability to reach a technical cooperation with Volkswagen Group and achieve technology export itself reflects the rise of domestic automotive technology. In the past, Chinese automobiles long relied on foreign technologies and played the role of pursuers. Today, domestic automakers represented by XPeng Motors have made significant breakthroughs in intelligentization, electrification, and other fields, mastered core technologies, and begun to emerge on the international stage.
Xu Haidong, Deputy Chief Engineer of the China Association of Automobile Manufacturers, once stated that China’s new energy vehicle technology currently leads the world by approximately 5 to 10 years. The cooperation between XPeng and Volkswagen is just the beginning. In the future, more domestic automakers will leverage their technological advantages to go global, compete with international automotive giants, and occupy a larger share in the global automotive market.
