Beijing, July 22, 2024. The Volkswagen Group is systematically driving forward the digitalization of its model portfolio “in China, for China”. In this context the company is pursuing a holistic technological approach for the region at the highest market requirements. From 2026, the ‘China Electronic Architecture’ (CEA) will be used in locally produced all-electric vehicles of the Volkswagen brand. In addition to models based on the new ‘China Main Platform’ (CMP), this now also includes all Volkswagen brand vehicles planned for China from the global MEB electric drive matrix. This approach reduces complexity, increases cost efficiency and accelerates the digital expansion of the model portfolio in China as we advance towards the era of intelligent fully connected vehicles (ICV). The new electronic architecture is being developed by Volkswagen Group China Technology Company (VCTC) and CARIAD China in cooperation with XPENG, with the Master agreement signed today. CARIAD China will play a key role in the project by also contributing the latest technologies such as state-of-the-art autonomous driving systems (ADAS) and smart cockpit functions.

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China: "With the 'China Electronic Architecture', we will be launching a new, very powerful electronic vehicle system on the market from 2026. By deciding to use this technology in the Volkswagen brand cars based on the China Main Platform and MEB, we are creating a holistic technological solution for the region. It is a clear proof-point of the excellent co-operation between Volkswagen Group China Technology Company, CARIAD China and our partner XPENG. This will not only strengthen the competitiveness of our global electric platform in China, but also reduce technological complexities and increase our cost efficiency across the region. This is the next milestone for our "in China for China" strategy and an important step in our transformation towards becoming a leading manufacturer of intelligent, fully connected electric vehicles."

Xiaopeng He, Chairman and CEO of XPENG, said: “The E/E Architecture collaboration marks the third major milestone we achieved within a year in our long-term strategic partnership with Volkswagen Group. With the trust built up between Volkswagen and XPENG as well as the dedication by engineers from both parties, we have been executing our joint projects swiftly and realized significant synergies. I look forward to broadening our technology collaboration and win-win strategic partnership.”

The E/E architecture plays a decisive role in the digitalization of the car. As the control center overseeing all essential electronic functions, it is also the digital link to the mechatronic platform and the substructure of the vehicle, including all basic components such as the powertrain and chassis. With the CEA, Volkswagen for the first time is developing its own local E/E architecture, that is technologically and economically geared exclusively to the specific needs of the Chinese market. It will therefore be a key pacemaker for Volkswagen on its way to becoming a leading manufacturer of intelligent, fully networked electric vehicles in China.

Stefan Mecha, CEO of the Volkswagen brand in China: "We are consistently tailoring our product range to the wishes of our Chinese customers. This way, we are not only incorporating cutting-edge technologies into our vehicles, but also localizing our products to offer highly competitive prices. The joint development work between Volkswagen, CARIAD and XPENG allows us to create clear advantages for our customers in an intensely competitive market."

Zone computers increase performance and reduce system complexity

The new vehicles with CEA technology to be introduced starting 2026 will benefit from significant advantages compared to the systems used to date. Instead of a large number of control units, three very powerful central computers will take control over electronic functions. The 30 per cent reduction in the number of control units will lead to significantly reduced costs and system complexity, while at the same time increasing performance and safety. Thanks to the efficient structure and high computing power of the new architecture, even complex applications such as autonomous driving functions can be integrated into the architecture much more quickly and easily than before.

Thomas Ulbrich, CTO of Volkswagen Group China and CEO of Volkswagen Group China Technology Company: "In a highly competitive market environment, development speed is crucial. In just 24 months from now, our vehicles will be equipped with the China Electronic Architecture, which can be updated and upgraded over the air at any time with the latest digital services - including autonomous driving functions. This puts us on a par with the local competition."

Software updates for the system can also be developed and installed on customer vehicles much more efficiently due to the smaller number of control units. This enables the rapid expansion of digital services and functions at any time. With the China Electronic Architecture, Volkswagen is creating the prerequisite to offer its customers customized digital services even after purchase, such as temporary upgrades of automated driving functions or higher battery efficiency.

CARIAD China assumes key role in CEA development and becomes coding specialist

CARIAD China plays a key role in the development of new vehicle models equipped with the 'China Electronic Architecture'. Based on partnerships with Chinese high-tech companies such as Horizon Robotics and ThunderSoft, it is developing state-of-the-art autonomous driving systems (ADAS) and smart cockpit functions - for example for AI-based driver support. This will turn the vehicles based on the CEA into the latest generation of smart electric cars.

With its more than 1,000 specialists, Volkswagen Group China's software house is thus gradually transforming itself from an integrator of global software solutions to a product supplier specializing in coding that develops the latest digital core technologies in vehicles for the Chinese market. 

Frank Han, CEO of CARIAD China: "The future of mobility lies in the software centric digitalized capabilities. And the Chinese market, with its tech-savvy customers, is a global pioneer in this area. CARIAD China is therefore a key pillar of the Group's 'in China, for China' strategy. This is because our primarily local experts in our CARIAD China team are driving forward the CEA platform in the specific Chinese ecosystem and can thus, together with our tech partners, bring the best software platform solutions tailored to the wishes of Chinese customers to vehicles in China. The architecture and source are the key to target localization."

'China Electronic Architecture' is the next milestone in the Group's "in China for China" strategy

The integration of the 'China Electronic Architecture' in locally produced Volkswagen brand vehicles on the China Main Platform and MEB from 2026 is a further milestone in the company's ‘In China for China’ strategy. The CEA will allow for consistent localization of development processes, which will make optimal use of the innovative strengths of the Chinese market and quickly meet specific customer requirements.

The Group is focusing on expanding its own local development capacities. In this context, Volkswagen is expanding its site in Hefei in the eastern Chinese province of Anhui into a state-of-the-art production, development and innovation hub for smart electric vehicles. The 'Volkswagen Group China Technology Company' (VCTC) is bundling central development units and decision-making processes for local vehicle and technology projects, while coordinating developmental processes with the R&D units of joint ventures. This enables development times to be shortened by more than 30 per cent and development costs to be significantly reduced.

From left: Thomas Ulbrich, CTO of Volkswagen Group China and CEO of Volkswagen Group China Technology Company; Charles Zhang, Vice President of XPENG; Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, Chairman and CEO of Volkswagen Group China; He Xiaopeng, Chairman & CEO of XPENG; Stefan Mecha, CEO of the Volkswagen brand in China

ONE CHINA ELECTRONIC ARCHITECTURE (CEA) FOR ALL