Xpeng Motors and Volkswagen Group Sign Joint Development Agreement; First Model Expected to Enter Mass Production Within 24 Months | Xinwen NEWS

On July 22, Xpeng Motors and Volkswagen Group jointly announced that, following Xpeng Motors' April 17, 2024 announcement regarding the signing of an electronic and electrical architecture technology strategic cooperation framework agreement, Xpeng Motors and Volkswagen Group have signed a joint development agreement for electronic and electrical architecture technology strategic cooperation. Both parties will fully commit to developing industry-leading electronic and electrical architectures for Volkswagen's CMP and MEB platforms produced in China. The signing of the joint development agreement not only marks the acceleration of electronic and electrical architecture development in China, but also lays the foundation for expanding the scope of the two parties' strategic cooperation in electronic and electrical architecture technology.

Heart Capital's investment team invested in Xpeng Motors at its Series A round, and is highly anticipating this strategic cooperation between Xpeng Motors and Volkswagen Group, as well as the cooperative models that will soon enter mass production. Last July, Volkswagen Group increased its capital investment in Xpeng Motors by approximately $700 million, acquiring approximately 4.99% equity stake. With its outstanding technical capabilities, excellent product experience, and strong brand influence, Xpeng Motors has joined hands with Volkswagen — a "big" and "small" partnership, a mutual commitment. This is also a milestone for Chinese new energy vehicle brands stepping onto the world stage. Heart Capital is actively expanding its footprint in China's early-stage investment landscape, focusing on technology investments in new energy, new mobility, and digital intelligence, committed to finding true value in non-consensus.

First Cooperative Model Expected to Enter Mass Production Within 24 Months

In the electronic and electrical architecture technology strategic cooperation, Xpeng Motors and Volkswagen Group have established joint development project teams in Guangzhou and Hefei, where engineers from both sides will work closely together to accelerate the development process of the electronic and electrical architecture. Through the close technical collaboration of these joint development project teams, the first vehicle model equipped with the jointly developed electronic and electrical architecture is expected to enter mass production within 24 months, demonstrating the deep mutual trust and firm commitment between Volkswagen Group and Xpeng Motors in their strategic partnership.

Furthermore, according to this joint development agreement, Xpeng Motors and Volkswagen Group will actively explore opportunities for further cooperation to expand the application scope of their jointly developed electronic and electrical architecture. Both parties have reached consensus on promoting their strategic cooperation in electronic and electrical architecture, and expect to further strengthen their strategic partnership through this effort.

"The electronic and electrical architecture cooperation is the third important milestone achieved within one year of our long-term strategic partnership with Volkswagen Group. With the high degree of trust between Volkswagen and Xpeng Motors, as well as the collaborative efforts of engineers from both sides, our cooperative projects have progressed rapidly and have already achieved significant synergies. I very much look forward to expanding the scope of our technology cooperation and deepening this win-win strategic partnership," said He Xiaopeng, Chairman and CEO of Xpeng Motors.

Ralf Brandstätter, Volkswagen Group Board Member for China and CEO of Volkswagen Group China, said: "The rapid progress achieved through Volkswagen Group's close cooperation with Xpeng Motors demonstrates the tremendous potential of our partnership. Both parties contribute their respective technical expertise to jointly develop advanced electronic and electrical architecture. Now, our cooperation takes a new step forward. This is another milestone in Volkswagen Group's ongoing commitment to its 'In China, for China' strategy, with a clear focus on Chinese customer needs and the advancement of technological innovation. Starting from 2026, all battery electric models launched by the Volkswagen brand in the Chinese market will be equipped with this powerful, efficient electronic and electrical architecture."

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Founded in 2022, Heart Capital is a China-based early-stage venture capital fund focused on technology and digitalization. The Heart Capital team is primarily composed of Yan Han, founding partner of Lightspeed; core investors; a chief financial officer; and senior investors from industry. The team's past investment cases include Series A investments in Xpeng Motors (NYSE: XPEV, 09868.HK) and Full Truck Alliance (NYSE: YMM), as well as FinVolution (NYSE: FINV), RoboSense (02948.HK), Baichuan, Manman Cold Chain, Fan Deng Reading, World Logistics, Micro-nano Star, LandSpace, Lanhu, Starfield, and others. Rooted in China with a global outlook, Heart Capital is committed to finding true value in non-consensus. Heart Capital respects the value of "people" and advocates the potential of "heart," looking forward to accompanying more young Chinese entrepreneurs in strengthening China and going global.