Volkswagen Group (China) and Xpeng Motors take their collaboration one step further: CEA architecture empowers fuel-powered vehicles, further expanding the intelligent connectivity landscape.

Unified architecture, full-line empowerment: The application scope of the regional control electronic and electrical architecture CEA jointly developed by Volkswagen Group (China) and Xiaopeng Motors has been further expanded, and will be expanded from Volkswagen brand domestic electric models to domestic fuel models.

Accelerate transformation and upgrading, and unleash energy efficiency advantages: The CEA architecture, designed specifically for the Chinese market, not only significantly simplifies system complexity and effectively reduces costs, but also provides a technical foundation for advanced driver assistance systems (ADAS) and smart cockpits equipped with in-vehicle AI smart assistants and next-generation infotainment functions.

Ralf Brandstätter, Managing Director of Volkswagen Group's China business, Chairman and CEO of Volkswagen Group China, said: "The application of advanced technological achievements should not be limited to a single power form. The brands under the Volkswagen Group are always committed to providing customers with the most advanced solutions in various market segments. By extending the CEA architecture to the Group's powerful fuel vehicle product matrix, the Group will further consolidate its technological leadership in the traditional power vehicle market. At the same time, in the highly competitive Chinese auto market, we continue to optimize our cost structure to ensure that we can always provide our customers with highly attractive vehicle choices."

[Beijing, August, 2025] Volkswagen Group's "In China, for China" strategy has reached another significant milestone: Volkswagen Group China and Xpeng Motors announced the expansion of their jointly developed Control Electronics Architecture (CEA). Starting in 2027, CEA will be applied not only to Volkswagen brand pure electric vehicles under development locally but also to gasoline and hybrid vehicles produced in China.

Equipped with a powerful central computing platform, CEA supports more advanced and reliable Advanced Driver Assistance Systems (ADAS). Its advanced intelligent cockpit features an onboard AI assistant and enables fast and stable vehicle-level over-the-air (OTA) updates. By reducing the number of existing electronic control units (ECUs), CEA significantly simplifies system complexity, effectively improving vehicle sustainability and long-term value. With this comprehensive software solution, Volkswagen Group will consolidate its competitive advantage in the Chinese market and set a new industry benchmark in the intelligent connected vehicle market across all powertrain types.

Ralf Brandstätter, Managing Director of Volkswagen Group's China business, Chairman and CEO of Volkswagen Group China, said: "The application of advanced technological achievements should not be limited to a single power form. The brands under the Volkswagen Group have always been committed to providing customers with the most advanced solutions in various market segments. By extending the CEA architecture to the Group's powerful fuel vehicle product matrix, the Group will further consolidate its technological leadership in the traditional power vehicle market. At the same time, in the highly competitive Chinese auto market, we continue to optimize our cost structure to ensure that we always provide customers with highly attractive vehicle choices. This will create stronger strategic depth for us, provide more room for our targeted cutting-edge innovation investments, and help us accelerate towards a fully connected, intelligent electric future."

He Xiaopeng, Chairman and CEO of Xpeng Motors, said: "This expanded cooperation agreement marks another important milestone in our collaboration, following the signing of the joint development agreement on July 22, 2024. This move not only demonstrates the deep mutual trust in our long-term strategic partnership, but also demonstrates our resolve and forward-looking vision to continuously innovate and jointly create value in the core technologies of smart electric vehicles."

Dr. Robert Cisek, CEO of Volkswagen Passenger Cars China and Executive Vice President of Volkswagen Group China, said: "Our gasoline-powered vehicles are at the forefront of technology in their segments, featuring comprehensive intelligent cockpit features and advanced and reliable driver assistance systems. By adopting the standardized CEA architecture across our entire model range, we will achieve dual benefits: on the one hand, we will accelerate the implementation of digital services and precisely meet customer needs through vehicle-wide OTA updates; on the other hand, we will leverage significant economies of scale to further optimize our cost structure and continuously enhance our market competitiveness."

Today, MQB platform vehicles, equipped with advanced and reliable advanced driver assistance systems and intelligent cockpit features, have won the favor of Chinese consumers and hold a leading position in their market segments. By 2024, the Volkswagen brand will deliver over 2 million vehicles to the Chinese market, with nearly 90% of these vehicles powered by gasoline engines, maintaining its leading position in the Chinese conventional vehicle market. With the expanded application of the CEA architecture, Volkswagen Group will achieve new levels of economies of scale in China, further consolidating its profitable conventional vehicle business and enhancing its technological and cost competitiveness.

Joining hands with Xpeng to deepen the "In China, for China" strategy

This deepening collaboration with Xpeng Motors marks another significant milestone in Volkswagen Group's "In China, for China" strategy. The Group is committed to strengthening its local R&D resources and technological capabilities, having established a new R&D and innovation center in Hefei: Volkswagen Group (China) Technology Co., Ltd. (VCTC). By deeply integrating into China's local technology ecosystem, Volkswagen Group is able to accurately grasp cutting-edge trends in the industry, such as digitalization and autonomous driving, proactively deploy its strategies, and fully unleash its growth potential and innovative momentum in the Chinese market.

Meanwhile, CARIAD China, Volkswagen Group's software competence center in China, is working closely with Volkswagen Group (China) Technology Co., Ltd. to accelerate the implementation of digital services. Leveraging strong local R&D capabilities and in-depth collaboration with local technology companies, CARIAD China is building the robust technical foundation of the CEA architecture while also developing reliable advanced driver assistance systems and autonomous driving, as well as core features such as advanced cockpits equipped with AI intelligent assistants.

Volkswagen Group launches full-scale model offensive in China

Starting in 2026, Volkswagen Group will further accelerate its intelligent, connected vehicle (ICV) offensive in China. The first batch of models, independently developed by local teams and designed specifically for Chinese consumers, debuted at the 2025 Shanghai Auto Show. By 2027, the Group will launch approximately 30 electrified models in China; by 2030, its brands will have introduced approximately 30 fully electric models in the Chinese market.

Going forward, the Volkswagen Group will fully realize the results of its accelerated transformation through new models from both the Volkswagen and Audi brands, including the all-new AUDI brand. With the intensive rollout of next-generation intelligent connected vehicles, the Group will not only further expand its reach into diverse market segments and reach a wider customer base, but will also solidify its leading position in the fiercely competitive Chinese auto market.