Volkswagen considers using Chinese technology

Volkswagen may use the China Electronic Architecture (CEA), developed with its Chinese partner Xpeng, in its European cars. Internal sources told the German magazine Manager Magazin that models like the ID. Golf and Skoda Enyaq could be built on this system, which connects a car’s computers and allows for remote software updates.

Volkswagen’s proposal faces uncertainty

The plan focuses on the SSP31 platform, which covers larger electric vehicles than the Polo, including the Tiguan. However, no final decision has been made. Volkswagen did not respond to Reuters, and some within the company are skeptical about how easily the CEA can meet European regulations.

Volkswagen’s investment in Xpeng

Volkswagen has invested 700 million euros in Xpeng, a Chinese electric carmaker. The two companies extended their partnership in 2025 to include thermal and plug-in hybrid models starting in 2027. Xpeng is already used in some Chinese Volkswagen models, and the CEA is already in production.

Volkswagen launches new models in China

Volkswagen began producing the ID. UNYX 07 in China in January 2026, the first model using the CEA. The ID. UNYX 09, another joint model, is sold by Volkswagen Anhui. However, these electric vehicles have not been popular in China despite Xpeng’s involvement.

Xpeng aims to expand its software reach

Xpeng plans to allow its cars to use Google Play starting in 2027, addressing a weakness in its software. Volkswagen, meanwhile, is trying to cut costs and improve its software strategy. It has also announced plans to sell Chinese-made electric vehicles in Europe, where Chinese manufacturers are increasing their presence.

Volkswagen’s pricing strategy

Volkswagen has managed to produce electric city cars for 25,000 euros in Europe and sells an electric SUV for 17,200 euros in China. The company has not yet officially decided whether to use the CEA in its European models.