Volkswagen said on Monday that it is deepening cooperation with Chinese startup Xpeng in terms of platform and software development for its electric vehicles.

Volkswagen Group China Technology Company and CARIAD China are developing an electronic architecture in cooperation with Xpeng.

From 2026 the architecture will be used in all locally produced Volkswagen brand models based on the China Main Platform and the MEB Platform, according to their deal.

The electronic architecture plays a decisive role in the digitalization of the car.

It is the control center overseeing all essential electronic functions and also serves as a digital link to the mechatronic platform and the substructure of the vehicle, including all basic components such as the powertrain and chassis.

Ralf Brandstaetter, member of the board of management of Volkswagen AG for China, said the decision enables the carmaker to create a holistic technological solution for the region.

"This will not only strengthen the competitiveness of our global electric platform in China, but also reduce technological complexities and increase our cost efficiency across the region."