First model from VW and Xpeng before series production

ID Unyx 07 First Model from VW and Xpeng Before Series Production

2025-12-10 From Thomas Günnel | Translated by AI 2 min Reading Time

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Volkswagen plans to begin series production of the first model developed with Xpeng in China later this year. It was created in about 18 months.

The "ID Unyx 07" is set to roll off the production line in China starting at the end of December 2025.(Image: Ministry of Industry and Information Technology) — The "ID Unyx 07" is set to roll off the production line in China starting at the end of December 2025.
(Image: Ministry of Industry and Information Technology)

Production of the first Volkswagen model based on the China Electrical Architecture (CEA) will begin on December 31 at the Volkswagen Anhui plant, according to the news site CarNewsChina. The "ID Unyx 07" was reportedly developed primarily by a Chinese team—from the electrical architecture to vehicle integration; and in just 18 months.

The news site refers to a statement by Han Sanchu, head of Volkswagen Group China and Cariad China. Accordingly, after the market launch of the first version "CEA 1.0" this year, version 2.0 is expected to follow as early as 2027, supporting various drive types. Additionally, more than 20 electrified models are set to launch by 2027.

Version 3.0 is planned for 2029—it is expected to feature advanced SoC chip development capabilities. The model range is set to include around 30 purely electric vehicles by 2030.

Collaboration Since July 2023

Xpeng and Volkswagen have been working together since July 2023. According to Car News China, Volkswagen invested 700 million USD for nearly a 5% stake in the Chinese automaker. The partnership now includes Volkswagen's China-focused Compact Main Platform (CMP) and Modular Electric Drive Kit (MEB).

In April 2024, the automakers announced their plan to jointly develop the CEA architecture. This was formally signed in July of the same year. The architecture features regional control and, according to the news site, a quasi-central computing design. This means fewer internal control units are needed in the vehicle. At the same time, system costs are reduced, and OTA updates for autonomous driving and cockpit functions become possible.

Other Chinese Partners of Volkswagen

Volkswagen collaborates with numerous companies in China, including SAIC, FAW, and JAC. Additionally, it works with technology companies such as Xpeng and Horizon Robotics, leveraging their expertise. Xpeng CEO He Xiaopeng announced in November that Xpeng's self-developed "Turing AI chip" is officially intended for use at Volkswagen.

According to Car News China, the new mid-size model is approximately 16 feet long, 6.1 feet wide, and 5.2 feet high. The electric drive is expected to deliver 228 horsepower.(Image: Ministry of Industry and Information Technology) — According to Car News China, the new mid-size model is approximately 16 feet long, 6.1 feet wide, and 5.2 feet high. The electric drive is expected to deliver 228 horsepower.
(Image: Ministry of Industry and Information Technology)

The collaboration between the partners also appears to be well-orchestrated. According to the news site, Han Hongming, CEO of the Volkswagen-Horizon joint venture Carizon, stated in early December that the chip developed by Volkswagen itself is based on Horizon's latest BPU architecture, "Brain Processing Unit." The computing power is between 500–700 TOPS, "Trillion Operations per Second."

The chip supports Level L2+ driver assistance systems and Level L3 and L4 autonomous driving, is suitable for supporting large language models—and is fully compatible with the CEA architecture jointly developed by Volkswagen and Xpeng.

Research And Development At Volkswagen Hefei

For about three years, Volkswagen has been restructuring its business model and research and development system. According to Car News China, the Volkswagen China Technology Company in Hefei has been operational since January 2024. It is the largest research and development center of the automotive group outside of Germany.

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Date: 08.12.2025

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