BEIJING – Chinese digital cockpit system developer Ecarx is in discussions with Volkswagen to integrate its technology into the automaker’s vehicles in Europe, as the company also explores opportunities to enter the U.S. market, CEO Shen Ziyu said on Wednesday.

Volkswagen already collaborates with Ecarx, a company backed by Geely Chairman Eric Li, to manufacture smart cars in Brazil and India. The partnership features Ecarx’s Antora 1000 digital cockpit system, which includes proprietary chips, voice recognition, and navigation services. Now, both firms are considering extending the partnership to Skoda-branded vehicles sold in Europe.

“The project focuses on delivering hardware and software for intelligent cockpit systems in VW’s Brazil and India factories, and potentially in Europe for Skoda,” Shen told Reuters. “This initiative is known as the Global Entry Infotainment Platform.”

Regarding potential U.S. expansion, Shen confirmed ongoing discussions. “While the current Volkswagen deal does not cover the U.S., we are exploring entry into the market,” he said, noting that Ecarx technology is already used in Geely-owned brands Volvo and Lotus.

Following Shen’s remarks, Ecarx clarified on Friday that his comments referred to the company’s internal feasibility discussions and not its current partnership with Volkswagen.

Skoda declined to comment, while a Volkswagen AG spokesperson confirmed the existing partnership with Ecarx for infotainment systems in internal combustion engine vehicles in Brazil and India but did not confirm any plans beyond those markets.

This move highlights how Western automakers are increasingly leveraging Chinese expertise in smart-driving technology to maintain their global market share. As Chinese electric vehicle manufacturers gain prominence with feature-rich, software-driven cars, traditional automakers are adapting to stay competitive.

German luxury carmaker Mercedes-Benz is also reportedly developing smart-driving vehicles with Chinese technology to appeal to global consumers.