China’s Ecarx Explores U.S. Entry, in Talks with Volkswagen for Smart Car Expansion in Europe

Shanghai: Chinese automotive technology firm Ecarx is exploring expansion into the United States and is in discussions with Volkswagen (VW) to supply smart car solutions for the European market, CEO Ziyu Shen said.

The Geely-backed company is actively assessing the U.S. market to introduce its digital cockpit and vehicle connectivity technologies to major automakers. It is also working with Volkswagen to integrate its technology into Skoda-branded cars for European consumers.

Talks with Volkswagen for European Expansion

Ecarx and Volkswagen have an existing partnership, with Ecarx’s Antora 1000 digital cockpit system already featured in VW vehicles manufactured in Brazil and India. The companies are now negotiating a broader collaboration to bring Ecarx’s infotainment and smart cockpit solutions to Volkswagen’s European lineup.

“We are currently in discussions with Volkswagen about expanding our technology into Skoda models sold in Europe,” Shen said in an interview.

Volkswagen is accelerating its software-driven vehicle development as part of its global strategy, and Ecarx’s expertise in AI-powered infotainment, navigation, and voice recognition could help the German automaker enhance its digital offerings.

Entry into the U.S. Market

Ecarx’s expansion plans extend beyond Europe, with the company exploring opportunities in the United States. While its technology is already present in the Geely-owned Volvo and Lotus brands, Shen confirmed that talks are underway to introduce Ecarx solutions into Volkswagen vehicles sold in North America.

However, geopolitical and regulatory challenges could impact Ecarx’s entry into the U.S. market. Shen acknowledged these concerns but emphasized the growing demand for intelligent vehicle technology in the region.

Western Automakers Increasingly Rely on Chinese Tech

Ecarx’s potential partnership with Volkswagen highlights the growing influence of Chinese automotive technology in global markets. Other Western automakers are also adopting Chinese-developed smart driving solutions.

For instance, Mercedes-Benz recently announced plans to equip its vehicles with lidar sensors from Chinese supplier Hesai, underscoring a shift toward Chinese innovation in autonomous and connected vehicle technologies.

Ecarx’s Global Growth Strategy

Currently, 70% of Ecarx’s revenue comes from Geely and its affiliated brands, but the company aims to reduce this dependency to below 50% by 2028. It is also targeting 50% of its revenue from international markets by 2030, with a focus on Europe and North America.

To support its global expansion, Ecarx is expanding its research and development (R&D) operations internationally while leveraging China’s cost-efficient supply chain to provide competitive solutions to global automakers.

Ecarx’s ongoing discussions with Volkswagen and its plans for a U.S. market entry mark a significant step in its mission to become a global leader in smart vehicle technology. If successful, these initiatives could position Ecarx as a key player in the rapidly evolving intelligent automotive industry.