[Beijing, August 15, 2025] The next milestone in the Volkswagen Group’s “In China, for China” strategy: Starting in 2027, the Volkswagen brand will further introduce the China Electronic Architecture (CEA), developed in collaboration with XPENG, into locally produced vehicles with conventional and hybrid powertrains. The innovative system is already applied in the pure-electric vehicles on our platform, and will be extended to all combustion engines and plug-in hybrid models. A corresponding agreement to expand its application scope was signed by both companies.

Equipped with central computing units, the CEA enables advanced driving assistance systems (ADAS) for enhanced safety, a state-of-the-art smart cockpit with AI-powered in-car driver assistant, and seamless over-the-air (OTA) updates. The architecture also lowers costs by reducing the number of electronic control units (ECUs) and streamlining overall system complexity. This comprehensive solution strengthens Volkswagen’s position in the Chinese market and sets new benchmarks for intelligent and fully connected vehicles across all powertrain types. 

Vehicles based on the MQB platform are already recognized as technological leaders in their segments, offering advanced ADAS and Smart Cockpit functions. In 2024, the Volkswagen brand delivered over two million vehicles to Chinese customers, approximately 90 percent of which were internal combustion engine (ICE) models. This made the brand once again the best-selling manufacturer of vehicles with conventional powertrains in China market.

The significant expansion of the CEA’s application will further enhance economies of scale within the China region, strengthening both the technological and economic competitiveness of the company’s highly profitable conventional powertrain business.

Ralf Brandstätter, Chairman and CEO of Volkswagen Group China and Member of the Board of Management of Volkswagen AG for China: “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. 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.”

Xiaopeng He, Chairman and CEO of XPENG: "The Expanded Technical Collaboration marks a significant milestone in the ongoing strategic collaboration between XPENG and the Volkswagen Group, following the signing of the Master Agreement on E/E Architecture Technical Collaboration on July 22, 2024. This Expanded Technical Collaboration not only underscores the mutual trust in our long-term strategic partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies."

Robert Cisek, CEO of the Volkswagen brand in China: “Our combustion engine models are already among the most technically advanced vehicles in the ICE market, offering customers comprehensive smart cockpit functions and advanced driving assistance systems. By standardizing the powerful China Electronic Architecture across all model series, we are delivering twofold value: accelerating the rollout of digital services and tailoring them fully to our customers’ needs through over-the-air updates, while at the same time optimizing cost structures through significant economies of scale.”

Partnership with XPENG Strengthens the “In China, For China” Strategy

The expanded cooperation with XPENG marks another milestone in the Volkswagen Group’s “In China, For China” strategy. As part of this approach, the Group remains firmly committed to strengthening local development resources and expertise. To this end, it has established a new R&D and innovation center together with the Volkswagen (China) Technology Company (VCTC) in Hefei. Through deeper integration into the local technology ecosystem, market-defining trends in China, such as digitalization and autonomous driving, can be addressed at an early stage, enabling the company to fully leverage the growth momentum and innovative strength of the Chinese market.

In close cooperation with Volkswagen (China) Technology Company (VCTC) in Hefei, CARIAD China plays a key role in the rapid rollout of digital services. As the Volkswagen Group’s software powerhouse in China, CARIAD China leverages its local development expertise and partnerships with domestic technology companies to deliver core technologies based on the China Electronic Architecture (CEA), the central computing and zonal electrical/electronic architecture. The focus is on advanced driving assistance systems (ADAS), including highly automated and autonomous functions, as well as state-of-the-art smart cockpit features for optimal, AI-powered driving assistance.

Volkswagen Group launches comprehensive model offensive for the Chinese market

In 2026, the Volkswagen Group will begin implementing an extensive model offensive for intelligent electric vehicles in China. The first vehicles developed exclusively in China for Chinese customers made their debut at Auto Shanghai 2025. By 2027, the Group will introduce 30 fully electric and electrified models (NEVs) as part of this offensive, and by 2030, the Group’s brands will offer around 30 pure electric models.

The upcoming models from the new AUDI brand, the Volkswagen brand and Audi brand, demonstrate the Group's rapid transformation. With the next generation of intelligent, fully connected vehicles (ICVs), the Group will tap into additional market segments and customer groups in China’s highly competitive automotive market.

CEA: One Architecture for all