Starting 2026, Volkswagen Electric Cars In China Are Powered By Xpeng Autonomous Systems

JAKARTA Volkswagen is increasingly aggressive in strengthening its electrification steps in China's world's largest automotive market. The German automotive giant is rumored to be adopting Xpeng's autonomous driving technology for use in their electric cars (EV) starting in 2026.

This collaboration is part of a licensing agreement that allows Volkswagen to take advantage of Xpeng's XNGP autonomous system. Where, advanced technology that is claimed to be able to compete with Tesla's Full Self-Driving (FSD) system, as reported by Carnewschina, Thursday, October 9.

Interestingly, Volkswagen does not change the core system of Xpeng, but rather adjusts it to suit the architecture of their specially marketed electric vehicle in China. This move deepens the collaboration that has been in place since 2023.

When Volkswagen invested 700 million euros or around IDR 13 trillion in Xpeng to secure a 4.99 percent stake. The investment is clear evidence that Volkswagen wants to strengthen its foothold in the electric vehicle segment and smart technology in the highly competitive market.

The two manufacturers are also developing a new electric vehicle platform called the China Electronic Architecture (CEA), which will be the foundation for Volkswagen cars in China. This new platform is a slightly updated E/E platform, which Xpeng already uses for its electric vehicles.

Initially, this platform was only aimed at two electric vehicles developed with Volkswagen. However, last year, Volkswagen announced that all cars in China would use it.

"Starting in 2026, all Volkswagen brand electric vehicles in China will be equipped with this highly powerful and efficient architecture," said Volkswagen AG management board member for China, Ralf Brandsttter, in July 2024.

The two companies are also developing two mid-range electric SUV models that will be the first product of their collaboration. Both are scheduled to launch in 2026 with advanced driver assistance technology (ADAS), artificial intelligence (AI)-based smart cockpit systems, as well as software update features in over-the-air (OTA).

Volkswagen also plans to expand the use of this technology to gasoline and hybrid-engined models produced in China. This strategy is in line with China's In China, for China vision. Where, Volkswagen strives to adapt product and technology development as needed and the growing trend of the local automotive market is very fast.

By cooperating with Xpeng, one of the main players in smart car technology in China, made Volkswagen look forward to accelerating the transition to autonomous vehicles and strengthening its competitiveness against local brands that are now starting to dominate.