HEFEI, Aug. 15 (Xinhua) -- Volkswagen Group China and Chinese new energy vehicle (NEV) maker XPeng announced Friday that they have signed an agreement to expand the application scope of the China Electronic Architecture (CEA) co-developed by the two sides.

Starting in 2027, the Volkswagen brand will further introduce the CEA, already applied in its pure-electric vehicles, to all combustion engines and plug-in hybrid models produced in China.

Equipped with central computing units, the CEA enables advanced driving assistance systems for enhanced safety, a smart cockpit with an AI-powered in-car driver assistant, and seamless over-the-air updates.

The architecture lowers costs by reducing the number of electronic control units and streamlining overall system complexity.

"By extending the China Electronic Architecture to our robust combustion engine fleet, we are strengthening our technological leadership in the conventional powertrain sector," said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China.

"At the same time, we are systematically reducing our cost base, enabling us to continue to offer highly attractive choices to customers in China's intensely competitive automotive market," said Brandstaetter.

"This expanded technical collaboration not only underscores the mutual trust in our long-term strategic partnership but also highlights our commitment to and vision for continuous innovation in smart electric vehicle technologies," said He Xiaopeng, chairman of XPeng.

The deepened cooperation with XPeng marks another milestone in the Volkswagen Group's "In China, For China" strategy. By 2030, the group will offer approximately 30 pure electric models in the Chinese market.