Volkswagen Partners with Xpeng for Driver Assistance in Chinese EVs
Volkswagen has announced a significant partnership for its electric vehicles in China. The company, which has been developing its own software platform, will use the XNGP driver assistance system from Chinese automaker Xpeng in its EVs from 2026. This comes after VW acquired a nearly 5% stake in Xpeng earlier this year.
VW's software unit, Cariad, was established in 2020 to create a uniform software platform for all its brands. However, the company has not publicly named another direct co-developer for autonomous driving features in China, apart from Xpeng. VW has emphasized partnerships but has only mentioned Rivian as a major software partner for other regions, not for China.
VW disputes a recent report from CarNewsChina, stating it will continue developing its own ADAS stack with Cariad and Horizon Robotics. The company maintains that it is committed to its own technology development while also exploring strategic partnerships like the one with Xpeng.
Both VW and Xpeng are working on two mid-size SUV models, with a planned market launch in 2026. The first model to feature XNGP technology will be a mid-size SUV jointly developed by the two companies.
Volkswagen's use of Xpeng's XNGP driver assistance system in its Chinese electric vehicles from 2026 signals a significant partnership between the two automakers. While VW continues to develop its own ADAS stack, it is also leveraging strategic partnerships to enhance its offerings in the competitive Chinese business market.
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