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XPENG and the Volkswagen Group Announce Entry into Agreement on Expanding E/E Architecture Technical Collaboration

1. XPENG and Volkswagen expand E/E Architecture collaboration significantly. 2. Integration covers both electric and ICE vehicle platforms in China. 3. Collaboration accelerates VW's software strategy and competitiveness. 4. XPENG aims to leverage innovative tech for better vehicle offerings. 5. Volkswagen seeks cost reduction through shared E/E Architecture.

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Why Bullish?

The deepening partnership with VW could enhance XPENG's market position and scale. Historical precedence shows that collaborations in tech-driven sectors positively impact investor sentiment.

How important is it?

The article highlights a crucial partnership aimed at technological innovation, which is vital for XPENG’s competitive edge. The scale of collaboration indicates potential future revenue growth and market leadership.

Why Long Term?

The strategic collaboration is designed for sustained growth, reinforcing XPENG's innovation and market expansion, which will build momentum over time.

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The industry-leading Electrical/Electronic architecture (“E/E Architecture”) jointly developed by both parties will be not only integrated into Volkswagen's electric vehicle platforms, but also deployed across its ICE and PHEV platforms in China, thereby significantly expanding the strategic technical collaboration to broader markets.This Expanded Technical Collaboration on E/E Architecture marks another milestone in the long-term strategic partnership between XPENG and Volkswagen Group, driving continuous strategic value creation for both parties. GUANGZHOU, China, Aug. 15, 2025 (GLOBE NEWSWIRE) -- XPeng Inc. (“XPENG” or the “Company”, NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle company, and the Volkswagen Group, one of the world’s leading automobile manufacturers, are pleased to announce that, following the execution of Master Agreement on E/E Architecture Technical Collaboration on July 22, 2024, XPENG and the Volkswagen Group have accelerated the joint development of the industry-leading E/E Architecture at "China Speed" and achieved key milestones. Based on the shared strategic objective to expand the application scope of the E/E Architecture within the Volkswagen Group and realize cross-platform and cross-powertrain platformization, both parties have entered into an Agreement on Expanding E/E Architecture Technical Collaboration ("Expanded Technical Collaboration"). The signing of this agreement marks that the E/E Architecture will be not only integrated into Volkswagen's electric vehicle platforms, but also deployed across its ICE (Internal Combustion Engine) and PHEV (Plug-in Hybrid Electric Vehicle) platforms in China, thereby significantly expanding the strategic technical collaboration to broader markets. The Expanded Technical Collaboration will further accelerate the Volkswagen Group's software-defined vehicle strategy execution and enhance its global competitiveness. Such cross-platform and cross-powertrain platformization of the E/E Architecture will enable the Volkswagen Group to achieve faster software iteration and Over-the-Air ("OTA") updates, and significantly shorten vehicle development cycle. Adhering to rigorous platform-oriented design philosophy, the joint R&D teams have designed and validated that the E/E Architecture developed for electric vehicle platforms can also be adapted to ICE and PHEV platforms. This technical solution represents a major milestone in joint technical collaboration, demonstrating the synergy and strategic value of the long-term partnership between both parties. The Expanded Technical Collaboration will significantly expand the scale of vehicles equipped with this industry leading E/E Architecture in China market, enabling the Volkswagen Group to realize significant platform-driven economies of scale and enhanced product competitiveness. "The Expanded Technical Collaboration marks a significant milestone in the ongoing strategic collaboration between XPENG and the Volkswagen Group, following the signing of the Master Agreement on E/E Architecture Technical Collaboration on July 22, 2024. This Expanded Technical Collaboration not only underscores the mutual trust in our long-term strategic partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies," said Mr. Xiaopeng He, Chairman and CEO of XPENG. Ralf Brandstätter, CEO of Volkswagen Group China and Member of the Board of Management of Volkswagen AG for China: “We do not confine technological excellence to a single powertrain type. Our brands are committed to delivering the most advanced solutions for customers in every segment. By extending the China Electronic Architecture to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector. 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. This will reinforce the company’s economic resilience, create capacity for targeted investment in cutting-edge innovations, and advance our journey toward fully connected, intelligent electric mobility.” About XPENG XPENG is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers. Its mission is to become a smart technology company trusted and loved by users worldwide. In order to optimize its customers’ mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including the powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley and San Diego. The Company's Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://www.xpeng.com. About the Volkswagen Group The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 115 production facilities in 17 European countries and 10 countries in the Americas, Asia and Africa. With around 680,000 employees worldwide. The Group’s vehicles are sold in over 150 countries. With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability. In 2024, the total number of vehicles delivered to customers by the Group globally was 9.0 million (2023: 9.2 million). Group sales revenue in 2024 totaled EUR 324.6 billion (2023: EUR 322.3 billion). The operating result before special items in 2024 amounted to EUR 19.1 billion (2023: EUR 22.5 billion). Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about XPENG’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: XPENG’s goals and strategies; XPENG’s expansion plans; XPENG’s future business development, financial condition and results of operations; the trends in, and size of, China’s EV market; XPENG’s expectations regarding demand for, and market acceptance of, its products and services; XPENG’s expectations regarding its relationships with customers, contract manufacturers, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPENG’s filings with the SEC. All information provided in this press release is as of the date of this press release, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Contacts:For Investor Enquiries:IR DepartmentXPeng Inc.Email: ir@xiaopeng.com Jenny CaiPiacente Financial CommunicationsTel: +1 212 481 2050 / +86 10 6508 0677Email: xpeng@tpg-ir.com For Media Enquiries:PR DepartmentXPeng Inc.Email: pr@xiaopeng.com Source: XPeng Inc.

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