Volkswagen Adopts Xpeng’s VLA 2.0 Smart Driving AI

Volkswagen Adopts Xpeng's VLA 2.0 Smart Driving AI
Volkswagen becomes the first customer for Xpeng’s second-gen VLA 2.0 AI driving solution, offering entry-level L4 autonomy without HD maps. Xpeng aims to deploy VLA 2.0 in production vehicles from March and targets 1 million overseas sales by 2030.

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Volkswagen has become the first commercial customer for Xpeng’s second-generation Vision-Language-Action (VLA 2.0) smart driving solution, marking the first large-scale export of a Chinese electric vehicle maker’s core AI technology to a leading global automaker.

The announcement was disclosed by Xpeng Chairman and CEO He Xiaopeng in an internal memo dated February 24, the first working day of the Year of the Horse in China.

VLA 2.0 is an end-to-end AI model designed to interpret and act on real-world conditions. It offers entry-level Level 4 autonomous driving capabilities in complex scenarios—narrow roads, campuses and other challenging environments—without relying on high-definition maps.

In January, Xpeng reported that robotaxis equipped with VLA 2.0 completed third-party closed-course testing and are preparing for public road trials. Beginning in March, the company plans to roll out VLA 2.0 software to its production vehicles, allowing consumers to experience near-Level 4 smart driving.

He Xiaopeng said he extensively tested VLA 2.0 during China’s Spring Festival, noting its smooth operation and precise predictions. He described the current phase as the “DeepSeek moment” for fully autonomous driving.

Earlier this month, Xpeng consolidated its autonomous driving and intelligent cockpit divisions into a unified “General Intelligence Center” to develop shared AI foundation models for driving decisions and human–machine interaction. Future voice commands could include instructions such as “Take me to Starbucks” or “Avoid the next few traffic lights.”

Looking ahead, Xpeng aims to achieve mass production and delivery of humanoid robots, flying cars and robotaxis by 2026. In its automotive division, the company will launch several new models this year and introduce at least four models to overseas markets in 2026. The P7+ sedan has completed trial production in Austria and will soon be delivered across 25 European countries, with plans to expand to more than 60 markets globally.

For emerging businesses, Xpeng plans to begin mass production of its Iron humanoid robot by the end of 2026 and will open its software development kit to global developers. Its flying car division, Aridge, has built a pilot line for the modular Land Aircraft Carrier, aiming for mass production later this year. A robotaxi ride-hailing service will launch pilot operations in 2026, with rapid growth expected between 2027 and 2028.

The company has set a target of 1 million overseas sales by 2030, with overseas operations projected to account for more than 70% of profits. In 2025, Xpeng delivered 429,445 vehicles, up 125.94% year-on-year, including 45,008 units in overseas markets—a 96% increase. This year, Xpeng plans to expand its overseas sales network to 680 outlets across Israel, Germany, Norway, Thailand and France, and to hire 8,000 new employees globally, including 5,000 through campus recruitment. Additionally, the company has filed for its flagship GX SUV, which will offer both all-electric and extended-range versions.

Source: CnEVPost

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