Volkswagen Becomes First Client for Xpeng's VLA 2.0 AI Driving Tech; Company Eyes 1 Million Global EV Sales by 2030

Volkswagen's decision to integrate Xpeng's second-generation Vision-Language-Action (VLA 2.0) smart driving solution marks a significant milestone in their collaboration, extending beyond vehicle development into advanced AI capabilities. Announced in an internal memo by Xpeng CEO He Xiaopeng on February 24, this move is the first major export of a Chinese EV manufacturer's core AI technology to a leading global automaker. He emphasized that selecting Chinese AI underscores Xpeng's competitive edge in scalable, generalizable core technologies.

The partnership originated in July 2023 with Volkswagen's $700 million stake in Xpeng for joint EV projects. VLA 2.0, an end-to-end model that comprehends the physical world, supports entry-level Level 4 autonomous driving in challenging environments like narrow roads and campuses, without needing high-definition maps, and accommodates diverse international driving norms.

Xpeng revealed in January that VLA 2.0-equipped robotaxis passed third-party closed-course tests and would soon begin public road trials, with rollout to consumer vehicles planned for March to deliver near-Level 4 experiences. During the recent Spring Festival, He personally tested VLA 2.0, noting its seamless performance and accurate predictions in complex scenarios, signaling the arrival of a pivotal moment for full autonomy akin to the "DeepSeek moment."

In early February, Xpeng consolidated its autonomous driving and intelligent cockpit teams into a "General Intelligence Center" to unify AI models for driving and interactions, enabling intuitive commands like directing the car to a coffee shop via scenic routes.

Looking ahead, He outlined bold 2026 targets: mass production of humanoid robots, flying cars, and robotaxis. In automotive, Xpeng will introduce several new models this year, including three extended-range EVs in Q1, with at least four models entering overseas markets in 2026. The P7+ sedan has finished trial production in Austria for delivery to 25 European countries, aiming for over 60 global regions.