The technical dynamics between new automotive forces and traditional overseas giants are undergoing a significant transformation. The latest announcement that XPeng Inc. and Volkswagen Group are extending their cooperation to plug-in hybrid and fuel vehicle domains marks a pivotal moment in this shift, signaling that new forces' technologies are beginning to provide feedback to the traditional fuel vehicle sector.
XPeng and Volkswagen have an established partnership history. In July 2023, both parties signed a strategic cooperation framework agreement, taking the first step in their collaboration and marking traditional automotive giants' recognition of new force companies' technical capabilities. The expanded electronic and electrical architecture technology strategic cooperation agreement signed on August 15, 2025, represents another important milestone in their partnership.
According to the agreement, the jointly developed electronic and electrical architecture will not only be integrated into Volkswagen's pure electric vehicle platforms in the Chinese market but will also be deployed to Volkswagen's fuel and plug-in hybrid vehicle platforms in China. Additionally, both parties' strategic technology cooperation will extend to broader markets.
Beyond XPeng and Volkswagen's collaboration, the partnership between Leapmotor and Stellantis Group also exemplifies new forces' technology export. On October 26, 2023, Stellantis Group invested 1.5 billion euros to acquire a 20% stake in Leapmotor and established a joint venture "Leapmotor International" with the company. Through this cooperation, Stellantis Group gained access to Leapmotor's components and certain technology usage rights, including Leapmotor's LEAP3.0 four-leaf clover architecture. This partnership not only brought funding and broader market channels to Leapmotor but also enhanced the company's brand influence while demonstrating that Chinese new forces' technologies are gaining global recognition and application.
In the early stages of new energy vehicle development, traditional overseas giants held absolute dominance in technology, leveraging their deep technical foundation accumulated in the fuel vehicle sector, massive R&D systems, and mature supply chain networks. They possessed core technologies such as engines and transmissions, along with long-accumulated automotive manufacturing processes and quality control experience. New force companies, mostly entering the market after the new energy vehicle wave emerged, were relatively weak in technology and resources, playing the role of technology followers.
However, with the rise of electric vehicles and intelligent connected vehicles, market demand and technological development directions have undergone tremendous changes. New force companies have focused more intensively on developing electric vehicle technology and intelligent connectivity, achieving breakthroughs in key areas such as battery technology, autonomous driving technology, and intelligent cockpits. In contrast, traditional overseas giants face numerous challenges in their transition toward new energy and intelligence. They must continue maintaining their fuel vehicle business while investing substantial resources in new energy and intelligent technology R&D, often finding themselves stretched thin. Moreover, traditional organizational structures and R&D processes have limited their innovation speed and market responsiveness. They need to undergo profound internal transformation to adapt to rapidly changing market demands and technological development trends.
Over the next decade, the technical feedback phenomenon will spread from the Chinese market globally. With the successful validation of XPeng's electronic and electrical architecture on fuel vehicle platforms, introducing Chinese technology solutions to European factories is only a matter of time. The possibility of Leapmotor providing three-electric technologies for Stellantis' premium brands suggests that Chinese technology will penetrate higher-tier market segments.
When German automotive publications lament that "automotive inventors are purchasing Chinese technology licenses," traditional giants realize that current competition is no longer about "having or not having" but about "being strong or not." The balance of discourse power in the global automotive industry has begun to shift.