Xpeng and Volkswagen Group to Co-Develop China Electric Architecture

Xpeng opens its first Hong Kong showroom and announces a game-changing partnership with Volkswagen Group to co-develop China Electric Architecture. The first model is set for mass production in 2026.

thepaper · 2024-07-24

Recently, Xpeng made some big movements.

Xpeng’s New Hong Kong Showroom

Firstly on July 19th, Xpeng opened its first HK showroom with 3,700 feet (343 square metaers), located in Yoho Mix.

According to the press release, the showroom is served as a display space for Xpeng’s latest cars and technology, as well as a service center for Xpeng owners. After Xpeng entered HK car market in May with its G6 and X9 in May, Xpeng has been taken order. Until now, it is said that the company has over 500 orders, and the deliveries will start soon,

Milestones in the Volkswagen Partnership

Secondly, on Juy 22nd, Xpeng announced that it have entered into a Master Agreement on E/E Collaboration with Volkswagen Group, which means that the two parties have entered a phase of more profound collaboration.

According to the agreement, the two parties will co-develop China Electric Architecture (CEA), an electrical/electronic architecture (E/E Architecture), which will apply to vehicles produced on Volkswagen's China Main Platform (CMP) and Modular Electric Drive Matrix (MEB) platforms, covering mass-produced cars from VW Anhui, SAIC-VW and FAW-VW. It is told by Xpeng official that the first model carrying the CEA will be mass preoduced in 2026.

Currently, Xpeng and VW established project centers in both Guangzhou and Hefei to co-develop the CEA. The engineers from both parties are joining hands accelerating the project.

Historical Context of the Xpeng and Volkswagen Partnership

Let's trace back the history of cooperation between both parties:

In July 2023, Volkswagen Group announced to invest 700 million dollars in Xpeng.

In December 2023, Volkswagen Group finished the trading and hold 4.99% of Xpeng’s stock.

In February 2024, both parties decided to co-develop two models facing China market.

In April 2024, both parties decided to co-develop the CEA.

In July 2024, both parties announced that the CEA will apply to all VW cars produced in China.

Are you optimistic about the partnership between Xpeng and Volkswagen Group?