CARIAD to co-develop China Electronic Architecture with XPENG

The Volkswagen Group is systematically driving forward the digitalization of its model portfolio “in China, for China”. From 2026, the China Electronic Architecture (CEA) will be used in locally produced all-electric vehicles of the Volkswagen brand. CARIAD China & XPeng co-develop the new architecture catering to the specific needs of Volkswagen, with the Master agreement officialized today. Further, CARIAD China will contribute the latest technologies such as state-of-the-art autonomous driving systems (ADAS) and smart cockpit functions.

Peter Bosch: “With the CEA, we are making a decisive step forward towards the Software Defined Vehicle. We are teaming up our development teams with XPeng colleagues to co-create a leading tech stack in the industry for the specific requirements of Volkswagen customers. For this we are transforming CARIAD China from an integrator of global software solutions to a strong software partner that caters the local customer requirements with latest technologies.”

Next milestone in the Group's software strategy in China

The integration of the 'China Electronic Architecture' is a further milestone in Volkswagen Group China’s ‘In China for China’ strategy. It will allow for consistent localization of development processes, which will make optimal use of the innovative strengths of the Chinese market and quickly meet specific customer requirements.

Frank Han, CEO of CARIAD China: " The Chinese market, renowned for its tech-savvy customers, stands at the forefront of the global software-defined vehicle industry. CARIAD China plays a pivotal role in our Group's 'in China, for China' strategy. The architecture and source code are crucial for effective localization. Leveraging the expertise of our predominantly local team, CARIAD China is advancing the CEA platform within the unique Chinese ecosystem. Collaborating closely with our tech partners, we deliver cutting-edge software solutions tailored to the specific desires of Chinese consumers. "

Zone computers increase performance and reduce complexity 

The E/E architecture plays a decisive role in the digitalization of the car and enables a new digital customer experience. With the CEA, Volkswagen for the first time brings its own local E/E architecture that is technologically and economically geared exclusively to the specific needs of the Chinese market. It will therefore be a key pacemaker for Volkswagen on its way to becoming a leading manufacturer of intelligent, fully networked electric vehicles in China.

In new vehicles with CEA technology three very powerful central computers will take control over electronic functions. This means a 30 per cent reduction in the number of ECUs and will lead to significantly reduced costs and system complexity, while at the same time increasing performance and safety. Thanks to the efficient structure and high computing power of the new architecture, even complex applications such as autonomous driving functions can be integrated significantly quicker and easier.

Software updates for the system can also be developed and installed on customer vehicles much more efficiently as updates can be implemented across zones rather than individual ECUs. This enables the rapid expansion of digital services and functions at any time. With the CEA, Volkswagen is creating the prerequisite to offer its customers customized digital services even after purchase, such as temporary upgrades of automated driving functions or higher battery efficiency.

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China: "With the 'China Electronic Architecture', we will be launching a new, very powerful electronic vehicle system on the market from 2026. By deciding to use this technology in the Volkswagen brand cars based on the China Main Platform and MEB, we are creating a holistic technological solution for the region. It is a clear proof-point of the excellent co-operation between Volkswagen Group China Technology Company, CARIAD China and our partner XPENG. This will not only strengthen the competitiveness of our global electric platform in China, but also reduce technological complexities and increase our cost efficiency across the region. This is the next milestone for our "in China for China" strategy and an important step in our transformation towards becoming a leading manufacturer of intelligent, fully connected electric vehicles."

Xiaopeng He, Chairman and CEO of XPENG, said: “The E/E Architecture collaboration marks the third major milestone we achieved within a year in our long-term strategic partnership with Volkswagen Group. With the trust built up between Volkswagen and XPENG as well as the dedication by engineers from both parties, we have been executing our joint projects swiftly and realized significant synergies. I look forward to broadening our technology collaboration and win-win strategic partnership.”

Thomas Ulbrich, CTO of Volkswagen Group China and CEO of Volkswagen Group China Technology Company: "In a highly competitive market environment, development speed is crucial. In just 24 months from now, our vehicles will be equipped with the China Electronic Architecture, which can be updated and upgraded over the air at any time with the latest digital services - including autonomous driving functions. This puts us on a par with the local competition."