XPENG and the Volkswagen Group Announce Entry into Agreement on Expanding E/E Architecture Technical Collaboration
XPENG (NYSE: XPEV) and Volkswagen Group have expanded their strategic technical collaboration on Electrical/Electronic (E/E) Architecture. The enhanced partnership will extend beyond electric vehicles to include ICE (Internal Combustion Engine) and PHEV (Plug-in Hybrid Electric Vehicle) platforms in China.
This expansion follows their Master Agreement signed in July 2024 and represents a significant milestone in their partnership. The collaboration will enable faster software iteration, Over-the-Air updates, and shorter vehicle development cycles for Volkswagen. The E/E Architecture has been validated to work across different powertrain platforms, demonstrating the partnership's strategic value.
XPENG (NYSE: XPEV) e il Gruppo Volkswagen hanno ampliato la loro collaborazione tecnica strategica sull'architettura elettrica/elettronica (E/E). La partnership potenziata non riguarderà soltanto i veicoli elettrici, ma includerà anche le piattaforme ICE (motore a combustione interna) e PHEV (veicoli ibridi plug-in) in Cina.
Questa estensione segue il Master Agreement firmato nel luglio 2024 e segna un passo importante nella cooperazione tra le due aziende. La collaborazione permetterà a Volkswagen di beneficiare di iterazioni software più rapide, aggiornamenti Over-the-Air e tempi di sviluppo veicoli ridotti. L'architettura E/E è stata validata su diverse tipologie di powertrain, confermando il valore strategico dell'accordo.
XPENG (NYSE: XPEV) y el Grupo Volkswagen han ampliado su colaboración técnica estratégica en la arquitectura eléctrica/electrónica (E/E). La alianza reforzada irá más allá de los vehículos eléctricos e incluirá las plataformas ICE (motor de combustión interna) y PHEV (vehículo híbrido enchufable) en China.
Esta ampliación se produce tras el Acuerdo Marco firmado en julio de 2024 y supone un hito relevante en su cooperación. La colaboración permitirá a Volkswagen iteraciones de software más rápidas, actualizaciones Over-the-Air y ciclos de desarrollo de vehículos más cortos. La arquitectura E/E se ha validado en diferentes tipos de trenes motrices, demostrando el valor estratégico de la asociación.
XPENG (NYSE: XPEV)와 폭스바겐 그룹이 전기/전자(E/E) 아키텍처에 대한 전략적 기술 협력을 확대했습니다. 강화된 파트너십은 전기차를 넘어 중국 내 ICE(내연기관) 및 PHEV(플러그인 하이브리드) 플랫폼까지 적용됩니다.
이번 확대는 2024년 7월 체결한 마스터 계약에 따른 것으로, 양사 협력의 중요한 전환점입니다. 이 협력으로 폭스바겐은 소프트웨어 반복 개발 속도 향상, OTA(무선 업데이트), 차량 개발 주기 단축의 혜택을 얻게 됩니다. E/E 아키텍처는 다양한 구동계 플랫폼에서 유효성이 확인되어 이번 파트너십의 전략적 가치를 입증했습니다.
XPENG (NYSE: XPEV) et le Groupe Volkswagen ont élargi leur collaboration technique stratégique sur l'architecture électrique/électronique (E/E). Ce partenariat renforcé ira au-delà des véhicules électriques pour inclure les plateformes ICE (moteur à combustion interne) et PHEV (véhicule hybride rechargeable) en Chine.
Cette extension fait suite à l'accord-cadre signé en juillet 2024 et constitue une étape importante de leur coopération. La collaboration permettra à Volkswagen de bénéficier de cycles d'itération logicielle plus rapides, de mises à jour Over-the-Air et de délais de développement véhicule plus courts. L'architecture E/E a été validée sur différentes plateformes de motorisation, démontrant la valeur stratégique du partenariat.
XPENG (NYSE: XPEV) und der Volkswagen Konzern haben ihre strategische technische Zusammenarbeit an der elektrischen/elektronischen (E/E) Architektur ausgeweitet. Die verstärkte Partnerschaft wird sich nicht nur auf Elektrofahrzeuge beschränken, sondern auch ICE (Verbrennungsmotor) und PHEV (Plug-in-Hybrid) Plattformen in China einbeziehen.
Diese Erweiterung folgt dem im Juli 2024 unterzeichneten Rahmenvertrag und stellt einen wichtigen Meilenstein der Kooperation dar. Die Zusammenarbeit ermöglicht Volkswagen schnellere Software-Iterationen, Over-the-Air-Updates und kürzere Fahrzeugentwicklungszyklen. Die E/E-Architektur wurde über verschiedene Antriebsplattformen hinweg validiert und belegt damit den strategischen Wert der Partnerschaft.
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Insights
XPENG's expanded VW partnership represents significant technology validation and revenue potential, extending their E/E architecture across VW's entire Chinese vehicle lineup.
This expanded technical collaboration between XPENG and Volkswagen represents a substantial deepening of their strategic partnership announced just last month. The critical development is that their jointly-developed Electrical/Electronic (E/E) architecture will now extend beyond electric vehicles to include Volkswagen's internal combustion engine (ICE) and plug-in hybrid (PHEV) platforms throughout China.
The technical achievement here shouldn't be understated. Creating a unified E/E architecture that works across multiple powertrain types demonstrates remarkable engineering flexibility. This cross-platform standardization delivers three key advantages: 1) faster software iteration cycles, 2) streamlined over-the-air update capabilities, and 3) shortened vehicle development timelines.
For XPENG, this represents powerful validation of their technological capabilities from one of the world's largest automakers. By expanding the deployment footprint across Volkswagen's entire Chinese vehicle lineup, XPENG gains significant economies of scale for their technology stack. This should translate to enhanced revenue opportunities beyond what was initially expected from the partnership.
For Volkswagen, this collaboration accelerates their software-defined vehicle strategy while improving cost efficiency through standardization. By implementing a common architecture across their diverse powertrain portfolio in China, Volkswagen can better compete in what their CEO describes as "China's intensely competitive automotive market" while creating "capacity for targeted investment in cutting-edge innovations."
- The industry-leading Electrical/Electronic architecture (“E/E Architecture”) jointly developed by both parties will be not only integrated into Volkswagen's electric vehicle platforms, but also deployed across its ICE and PHEV platforms in China, thereby significantly expanding the strategic technical collaboration to broader markets.
- This Expanded Technical Collaboration on E/E Architecture marks another milestone in the long-term strategic partnership between XPENG and Volkswagen Group, driving continuous strategic value creation for both parties.
GUANGZHOU, China, Aug. 15, 2025 (GLOBE NEWSWIRE) -- XPeng Inc. (“XPENG” or the “Company”, NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle company, and the Volkswagen Group, one of the world’s leading automobile manufacturers, are pleased to announce that, following the execution of Master Agreement on E/E Architecture Technical Collaboration on July 22, 2024, XPENG and the Volkswagen Group have accelerated the joint development of the industry-leading E/E Architecture at "China Speed" and achieved key milestones. Based on the shared strategic objective to expand the application scope of the E/E Architecture within the Volkswagen Group and realize cross-platform and cross-powertrain platformization, both parties have entered into an Agreement on Expanding E/E Architecture Technical Collaboration ("Expanded Technical Collaboration"). The signing of this agreement marks that the E/E Architecture will be not only integrated into Volkswagen's electric vehicle platforms, but also deployed across its ICE (Internal Combustion Engine) and PHEV (Plug-in Hybrid Electric Vehicle) platforms in China, thereby significantly expanding the strategic technical collaboration to broader markets.
The Expanded Technical Collaboration will further accelerate the Volkswagen Group's software-defined vehicle strategy execution and enhance its global competitiveness. Such cross-platform and cross-powertrain platformization of the E/E Architecture will enable the Volkswagen Group to achieve faster software iteration and Over-the-Air ("OTA") updates, and significantly shorten vehicle development cycle.
Adhering to rigorous platform-oriented design philosophy, the joint R&D teams have designed and validated that the E/E Architecture developed for electric vehicle platforms can also be adapted to ICE and PHEV platforms. This technical solution represents a major milestone in joint technical collaboration, demonstrating the synergy and strategic value of the long-term partnership between both parties. The Expanded Technical Collaboration will significantly expand the scale of vehicles equipped with this industry leading E/E Architecture in China market, enabling the Volkswagen Group to realize significant platform-driven economies of scale and enhanced product competitiveness.
"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," said Mr. Xiaopeng He, Chairman and CEO of XPENG.
Ralf Brandstätter, 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.”
About XPENG
XPENG is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers. Its mission is to become a smart technology company trusted and loved by users worldwide. In order to optimize its customers’ mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including the powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley and San Diego. The Company's Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://www.xpeng.com.
About the Volkswagen Group
The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 115 production facilities in 17 European countries and 10 countries in the Americas, Asia and Africa. With around 680,000 employees worldwide. The Group’s vehicles are sold in over 150 countries.
With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability.
In 2024, the total number of vehicles delivered to customers by the Group globally was 9.0 million (2023: 9.2 million). Group sales revenue in 2024 totaled EUR 324.6 billion (2023: EUR 322.3 billion). The operating result before special items in 2024 amounted to EUR 19.1 billion (2023: EUR 22.5 billion).
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about XPENG’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: XPENG’s goals and strategies; XPENG’s expansion plans; XPENG’s future business development, financial condition and results of operations; the trends in, and size of, China’s EV market; XPENG’s expectations regarding demand for, and market acceptance of, its products and services; XPENG’s expectations regarding its relationships with customers, contract manufacturers, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPENG’s filings with the SEC. All information provided in this press release is as of the date of this press release, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Contacts:
For Investor Enquiries:
IR Department
XPeng Inc.
Email: ir@xiaopeng.com
Jenny Cai
Piacente Financial Communications
Tel: +1 212 481 2050 / +86 10 6508 0677
Email: xpeng@tpg-ir.com
For Media Enquiries:
PR Department
XPeng Inc.
Email: pr@xiaopeng.com
Source: XPeng Inc.
FAQ
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