Volkswagen Turns to Xpeng Chips and Driving Tech for Next-Gen China Models
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Volkswagen AG will equip several of its upcoming models in Chinese mainland with self-developed chips and advanced driver-assistance technology from Chinese electric vehicle maker Xpeng Inc., marking a major step in the German auto giant’s bid to regain ground in the world’s most competitive car market.
The collaboration, announced by Xpeng at its Tech Day event on Wednesday, will see Volkswagen adopt Xpeng’s in-house “Turing” computing chips and latest-generation advanced driver-assistance system (ADAS). The technologies will be integrated into new VW-branded models scheduled for launch in early 2026.
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- Volkswagen will use Xpeng’s self-developed “Turing” chips and advanced driver-assistance system (VLA) in new models for China, launching in early 2026.
- The partnership builds on VW’s 2023 investment of $700 million for a 4.99% stake in Xpeng, expanding collaboration to both EV and gasoline/hybrid models.
- This move highlights foreign automakers’ increasing reliance on Chinese technology and local partnerships to stay competitive in China’s auto market.
- Volkswagen AG
- Volkswagen AG plans to equip several upcoming models in mainland China with Xpeng's self-developed "Turing" computing chips and advanced driver-assistance systems (ADAS) by early 2026. This collaboration expands on a 2023 partnership where VW invested $700 million in Xpeng. This move highlights VW's strategy to regain market share in China by adopting advanced intelligent-driving technology from local partners.
- Xpeng Inc.
- Xpeng Inc. is a Chinese electric vehicle maker whose self-developed "Turing" computing chips and advanced driver-assistance system (ADAS) will be adopted by Volkswagen for several upcoming models in mainland China. This expands on a previous partnership where VW invested $700 million for a 4.99% stake in Xpeng and co-developed EVs. This collaboration validates Xpeng's proprietary technology and could lead to new revenue channels.
- Horizon Robotics
- Volkswagen expanded its ADAS collaboration with Horizon Robotics in April 2025. This partnership is part of Volkswagen's broader strategy to localize technology and products for the Chinese market, alongside its collaboration with Xpeng and ZYT.
- ZYT
- ZYT is a Chinese systems supplier that Volkswagen has partnered with. This collaboration is part of Volkswagen's broader strategy to localize its technology and product lineup for the Chinese market.
- July 2023：
- Volkswagen invested about $700 million for a 4.99% stake in Xpeng and began a partnership focused on co-developing two EV models based on an Xpeng platform.
- April 2025：
- Volkswagen announced an expanded ADAS collaboration with Horizon Robotics.
- Wednesday, November 6, 2025：
- Xpeng announced at its Tech Day that Volkswagen will adopt Xpeng’s in-house 'Turing' chips and latest-generation ADAS, to be integrated into upcoming VW models in China.
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