VW and Xpeng’s First Co-Developed EV Starts Production Dec 31 After Just 18 Months

Volkswagen’s first CEA-based model, the ID.UNYX 07, is about to enter series production.

At WNAT-CES 2025 (the 10th New Automotive Technology Cooperation Ecosystem Conference), CARIAD China CEO Frank Han revealed that the first model based on Volkswagen’s new CEA (China Electrical Architecture) E/E platform for the Chinese market will start production at VW Anhui on December 31 this year.

Unlike previous models built on the global MEB platform, CEA was defined from day one as a “China-focused” electrical backbone. The architecture is being developed jointly by Volkswagen China Technology Company (VCTC), CARIAD China, CARIZON and Xpeng, among other partners.

According to Han, “the full development chain from architecture to complete vehicle integration was led by the China team and took just 18 months.” For a group long known for its lengthy product cycles and rigid processes, this marks a clear acceleration.

The model he was referring to is the ID.UNYX 07, the first all-electric sedan under VW Anhui. The car has already completed MIIT homologation and is scheduled to launch in 2026 as a mid-size pure-electric sedan.

Based on the filing information, the ID.UNYX 07 measures 4,853 × 1,852 × 1,566 mm with a 2,826 mm wheelbase. Compared with the current ID.UNYX 06, length is up by 190 mm and wheelbase by 60 mm, bringing interior space closer to that of mainstream family sedans.

The powertrain uses a rear-mounted single motor with peak output of 170 kW, paired with a Gotion LFP battery pack with a capacity of 59.9 kWh. CLTC range is rated at 558 km. A dual-motor all-wheel-drive version is planned later to create a clearer price and performance spread.

In terms of design, the ID.UNYX 07 carries over many of the styling cues from the ID.UNYX 06 — likely one of the reasons why the project could be completed within an 18-month window.

On the intelligent driving side, CARIZON CEO Marcus Hafkemeyer previously disclosed at Horizon Robotics’ first technology ecosystem conference that the ID.UNYX 07 will be built on Horizon’s J6M platform and will support L2+ functions.

CARIZON has mapped out three tiers of solutions for Volkswagen: the entry-level package uses a single J6M with six cameras, targeting models such as the ID.UNYX 07 and focused on highway navigation; the mid-tier setup upgrades to 11 cameras with a single J6M, enabling an evolution path toward city navigation; the high-end package keeps 11 cameras but adds a J6H or J6P, emphasizing higher compute and functional redundancy.

Volkswagen’s roadmap for city-level assisted driving also includes capabilities such as highway ETC recognition and space-to-space memory parking — features that Chinese brands are already turning into near-standard equipment. Rather than chasing a “full stack self-developed” storyline, the JV approach is to start from high-frequency use cases.

That said, the ID.UNYX 07 will be under real pressure when it hits the market. According to January–November retail data for JV new energy models compiled by Yiche, Toyota’s bZ3X leads with around 62,800 units, Buick GL8 PHEV has surpassed 50,600 units, and Nissan N7 has reached 43,500 units. On the Volkswagen side, the ID.3 is at roughly 36,500 units, while the ID.4 CROZZ and ID.4 X stand at around 18,100 and 13,900 units respectively — clearly lagging behind the new wave of JV NEVs that have been deeply shaped by Chinese teams.

Against this backdrop, the market broadly expects the ID.UNYX 07 to be priced down toward the RMB 150,000 ($21,200) bracket or even lower. If the CEA platform can genuinely cut costs without compromising user experience, and if the localized hardware–software stack can shorten iteration cycles, Volkswagen has a chance to carve out a meaningful new pocket of volume in China’s increasingly crowded JV NEV segment.