Ecarx in Talks with VW to Develop Smart Cars for Europe, US
Deal News | Mar 12, 2025 | Zawya
In a strategic move to enhance its technological capabilities, Volkswagen is in discussion with Ecarx, a digital cockpit system developer backed by Geely, to integrate Ecarx technologies into its cars for developed markets such as Europe and the United States. Ecarx, which provides systems like the Antora 1000 digital cockpit - complete with proprietary chip, software, voice recognition, and navigation - currently collaborates with Volkswagen in Brazil and India. The talks extend to potentially including Volkswagen's Skoda models in Europe and launching Ecarx-equipped vehicles in the US. This initiative underscores Western automakers' growing reliance on Chinese technological expertise amid declining sales in China. The collaboration exemplifies the trend of Chinese firms like Ecarx and Hesai innovating new technologies for international markets, with Ecarx also aiming to lessen its dependence on Geely by increasing its overseas R&D efforts and revenue. The discussions are part of a broader automotive industry transformation, where legacy car brands are adopting agile, technology-driven approaches to maintain competitiveness.
Sectors
- Automotive Industry
- Technology Industry
Geography
- China – Ecarx is a Chinese company backed by Geely, and the article discusses its technological innovations.
- Europe – The discussions involve implementing Ecarx technologies into Volkswagen's Skoda cars sold in European markets.
- United States – There is potential for launching vehicles with Ecarx technologies for the US market as part of the discussed partnership.
Industry
- Automotive Industry – The automotive industry is relevant as the article discusses partnerships between Volkswagen and Ecarx in developing technologies for smart cars aimed at global markets.
- Technology Industry – This industry is pertinent given the development and integration of digital cockpit systems, proprietary chips, and smart car technologies by Ecarx.
Financials
- 70% – Percentage of Ecarx's revenue that currently comes from Geely and its affiliated brands.
- 50% – Ecarx's target reduction of revenue reliance on Geely by 2028.
- 2030 – Year by which Ecarx expects to derive half of its revenue from overseas markets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ecarx | Technology provider | Company | A digital cockpit system developer backed by Geely that provides technologies like the Antora 1000 system. |
| Volkswagen | Automotive manufacturer | Company | A leading global automotive manufacturer exploring the integration of Ecarx's technologies into its vehicles. |
| Geely | Investor | Company | A Chinese automotive company backing Ecarx and facilitating its developmental initiatives. |
| Shen Ziyu | CEO of Ecarx | Person | CEO of Ecarx, providing insights into the strategic discussions with Volkswagen. |
| Cariad | Software unit | Company | Volkswagen's in-house software unit that faced challenges, leading to Volkswagen seeking external technological partnerships. |
| Hesai | Technology provider | Company | A Chinese firm providing lidar sensors for smart driving cars developed by Mercedes-Benz. |