"Volkswagen and XPeng's Collaborative EV Architecture to Slash Costs and Boost Competition in China"

Volkswagen and XPeng have developed a new architecture for EVs, the China Electrical Architecture (CEA), which will enable Volkswagen to offer more affordable EVs and compete with Tesla on cost efficiency. The CEA will help Volkswagen achieve a 40% cost reduction target for its China-developed platform compared to its German-developed MEB platform. This partnership is a big step in Volkswagen’s development of intelligent connected vehicles for the Chinese market, as it accelerates its “In China, for China” strategy. Meanwhile, local EV maker BYD is challenging Tesla and Jeep with new offerings, posing further competition in the EV market.