Volkswagen China begins production of locally-developed EV architecture

Volkswagen Group China has started manufacturing its all-new China Electric Architecture (CEA), which will serve as the basis for future electric vehicles produced for the local Chinese market.

Developed with Chinese carmaker Xpeng and VW’s software subsidiary, Cariad, the zonal CEA will serve as the platform for all of Volkswagen China’s next-generation software-defined Intelligent Connected Vehicles (ICVs), starting with the mid-sized ID.Unyx 07 fastback pictured below.

Like the SPA3 platform underpinning the recently launched Volvo EX60, CEA is built around a yet-to-be-announced high-power computing system.

Designed to be scalable and continuously upgradable with full over-the-air (OTA) updates, VW China will be able to use CEA across multiple platforms and powertrains ranging from dedicated EVs to hybrids and internal combustion-engined cars.

VW China’s software-defined vehicle (SDV) approach means that CEA reduces the number of electronic control units by around 30%, reducing electrical system complexity. It also acts as a stable foundation for AI cockpit functions specifically developed for the Chinese market. The scalable nature of CEA also means that vehicle development time is cut by 30%.

By developing the platform locally and onboarding Chinese suppliers in the early concept stage, costs are slashed by up to 50%. This will allow VW to quickly respond to customer demands in China’s fast-growing and ever-changing EV market.

By adopting an “in China, for China” strategy, CEA went from concept to production in just 18 months. In doing so, it marked the first time VW built a completely new scalable EV platform.

“We have now blazed the trail for a new generation of Intelligent Connected Vehicles in China,” commented VW Group China CEO, Ralf Brandstätter. “The China Electronic Architecture allows us to bring software-driven innovation to market at competitive cost and speed, across electric vehicles, hybrids and combustion engine models.

“This is how we scale Intelligent Connected Vehicles in China – by combining local speed with Volkswagen DNA.”

The ID.Unyx 07 is the third model from VW’s China-exclusive subbrand, Unyx. It will go on sale later in 2026 and is built at the VW plant in China’s Anhui province – the ninth most populous region in the country. Alongside the ID.Unyx 07, VW China will introduce an undisclosed number of A- to B-segment CEA-based platform EVs this year.