Volkswagen Group China and XPeng announced on Friday that their jointly developed zonal electrical/electronic architecture, the China Electronic Architecture (CEA), will see broader adoption. Starting in 2027, the CEA will be deployed not only in locally developed Volkswagen-brand pure electric vehicles but also extended to combustion engine and hybrid models produced in China.

Equipped with central computing units, the CEA supports advanced driving assistance systems to enhance safety, features a cutting-edge smart cockpit with an AI-powered in-car assistant, and enables online updates. Additionally, the architecture helps reduce costs by minimizing the number of electronic control units and simplifying overall system complexity.

Ralf Brandstaetter, chairman and CEO of Volkswagen Group China, said: "By extending the CEA to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector, and at the same time, we are systematically reducing our cost base, enabling us to continue offering highly attractive choices to customers in China's intensely competitive automotive market."

The expanded cooperation with XPeng advances Volkswagen's "In China, For China" strategy, reinforcing its commitment to localized R&D. The initiative also includes a new Hefei innovation center via the Volkswagen (China) Technology Company (VCTC) and leverages CARIAD China, the Group's software hub, enabling faster responses to key market trends like digitalization and driving assistance through deeper local tech integration.

As part of these efforts, Volkswagen Group China plans to introduce 30 NEV models by 2027, with around 30 pure electric models expected by 2030 across its new AUDI, Volkswagen, and Audi brand lineups.