Chinese electric vehicle (EV) maker Xpeng (9868.HK) and German automaker Volkswagen AG (VOWG_p.DE) have announced a strategic collaboration to accelerate the development of new EV architecture. The partnership will establish project houses in Guangzhou and Hefei, China, where engineers from both companies will work closely together.
These new facilities are designed to facilitate the joint development of an advanced EV architecture, which includes configurations of electronic components, modules, and vehicle networks. The aim is to begin production of these jointly-developed architectures within two years.
Volkswagen’s board member for China, Ralf Brandstätter, highlighted that starting from 2026, all electric vehicles under the Volkswagen brand in China will incorporate this new, powerful, and efficient architecture. This initiative is part of Volkswagen’s broader strategy to leverage new architectures to produce more affordable and technologically advanced electric vehicles in its largest market.
The partnership between Xpeng and Volkswagen, initiated last year, saw Volkswagen acquire a 4.99% stake in Xpeng for approximately $700 million. As part of their collaboration, the companies plan to launch two Volkswagen-branded EV models by 2026.
This collaboration reflects a growing trend among automakers to pool resources and expertise to accelerate the development and deployment of next-generation electric vehicles.
