KATHMANDU: Volkswagen (VW) will start using Xpeng’s autonomous driving system, XNGP, in its electric vehicles for the Chinese market from 2026. The first model to feature it will be a mid-size SUV jointly developed with Xpeng.
VW had originally assigned autonomous driving development to CARIAD China, a subsidiary that develops and adapts localized software and digital services for VW Group vehicles in China.
The German automaker invested about $760 million in Xpeng in 2023, gaining a 4.99% stake in the Guangzhou-based company. Both automakers are now co-developing two mid-size SUVs expected to launch in 2026.
They are also working on a new electric platform called the China Electronic Architecture (CEA), which manages and connects all electronic systems in a vehicle. VW says the new system will help shorten development time, reduce costs and make EVs more suited to Chinese consumers.
From 2026, all VW EVs in China will use this new architecture, confirmed Ralf Brandstatter, VW’s board member for China.
Xpeng will also supply its in-house Turing AI chips, which will power VW’s driver assistance and autonomous features.
Testing of the XNGP system on VW’s first joint SUV is already underway. If successful, VW plans to expand the technology to all its electric models in China. The branding for the licensed system on VW cars has not yet been finalized.
