Major signing! Xpeng and Volkswagen Announce Partnership
On August 15, Xpeng Motors and Volkswagen Group jointly announced that Xpeng Motors has signed an agreement with Volkswagen Group to expand their strategic cooperation in electronic and electrical architecture technology. The signing of this expanded cooperation agreement marks that the industry-leading electronic and electrical architecture jointly developed by both parties will not only be integrated into Volkswagen's pure electric vehicle platforms in the Chinese market but also deployed across Volkswagen's gasoline and plug-in hybrid vehicle platforms in the Chinese market. The technical strategic cooperation between the two parties will be expanded to a broader market.
Volkswagen stated, “Starting in 2027, the CEA (China Electrical Architecture) architecture will cover all Volkswagen brand gasoline-powered models in China.” Dr. Herbert Diess, Chairman and CEO of Volkswagen Group China, said, “By extending the CEA architecture to the Group's robust gasoline-powered vehicle product portfolio, the Group will further solidify its technological leadership in the traditional powertrain vehicle market. Meanwhile, in the highly competitive Chinese automotive market, we will continue to optimize our cost structure.”
This expanded cooperation agreement marks another significant milestone in the partnership between the two parties, following the signing of a joint development agreement on July 22, 2024.
On July 26, 2023, Volkswagen Group and Xpeng Motors officially announced their partnership. It is understood that Xpeng and Volkswagen have signed a long-term technical cooperation framework agreement. In the initial phase of the collaboration, the two parties will jointly launch two B-segment pure electric vehicles tailored for the Chinese market. Additionally, Volkswagen Group announced it will invest approximately US$700 million in Xpeng Motors, acquiring approximately 4.99% of Xpeng's equity at a price of US$15 per ADS. On February 29, 2024, Xpeng Motors announced that it had signed a strategic technical cooperation joint development agreement and established a joint procurement plan with Volkswagen Group. On April 17, 2024, Xpeng Motors and Volkswagen Group reached their third strategic cooperation agreement: Xpeng will jointly develop an industry-leading electronic and electrical architecture for Volkswagen's electric vehicle platform in the Chinese market. It is expected to be applied to Volkswagen brand electric vehicles produced in China starting from 2026. On April 17, 2024, Xpeng Motors signed a framework agreement with Volkswagen Group for strategic cooperation on electronic and electrical architecture technology.
On August 1, Xpeng Motors announced its latest delivery figures, showing that from January to July 2025, Xpeng Motors delivered a cumulative total of 233,906 new vehicles, representing a year-on-year increase of 270%. In July alone, 36,717 new vehicles were delivered, marking a year-on-year increase of 229% and setting a new record for monthly deliveries.
Xpeng Motors' ability to establish a technical cooperation agreement with the Volkswagen Group and achieve technology output itself reflects the rise of domestic automotive technology. In the past, China's automotive industry relied heavily on foreign technology and played a catch-up role. Today, domestic automakers like Xpeng Motors have made significant breakthroughs in areas such as intelligentization and electrification, mastered core technologies, and begun to make their mark on the international stage.