Volkswagen is in discussions with Chinese digital cockpit system developer Ecarx to incorporate its technologies into vehicles sold in developed markets such as Europe and the United States, Ecarx CEO Shen Ziyu said on Wednesday.
The German automaker already collaborates with the Geely-backed firm in Brazil and India, where its Antora 1000 digital cockpit system is featured in smart vehicles. This system integrates proprietary chips and software, offering functions such as voice recognition and navigation. The companies are now looking to extend their partnership to Skoda-branded cars in Europe and are also exploring the integration of Ecarx’s technologies into Volkswagen models for the U.S. market.
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The potential expansion reflects a broader trend of Western automakers turning to Chinese expertise in smart driving technology to maintain global market share. Traditional automotive brands are increasingly competing with Chinese electric vehicle manufacturers that have disrupted the industry with software-driven innovations.
Volkswagen took over a year to select a smart technology supplier from a pool of 13 candidates, which included South Korean firms LG and Samsung, as well as Chinese competitor Desay SV. Meanwhile, Volkswagen’s in-house software division, Cariad, has struggled to gain traction and is reportedly planning significant layoffs.
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Ecarx, which derives 70% of its revenue from Geely and affiliated brands, aims to reduce this dependency to below 50% by 2028 and expects half of its revenue to come from international markets by 2030. The company is expanding its global R&D presence to mitigate geopolitical risks and leverage China’s competitive supply chain to extend the lifecycle of its products in overseas markets.
Source: Reuters