China Daily

Joint ventures cement Volkswagen’s top position in Chinese market

- By LI FUSHENG

Volkswagen, the best-selling internatio­nal brand in China, is consolidat­ing its position in the country with increased localizati­on efforts ranging from tailor-made models to cooperatio­n with Chinese partners.

“The Volkswagen brand can proudly look back on 40 years of success in China and carry this success story into the new mobility era. We are ushering in a new era of mobility in China, together with all our Chinese partners,” said Thomas Schaefer, Volkswagen Brand CEO.

Volkswagen has lived up to its name in China as the “people’s cars”, with tens of millions of vehicles on Chinese roads now and forming childhood memories for many over the past decades.

SAIC Volkswagen, a joint venture establishe­d with Shanghai-based SAIC Motor in 1984, is the oldest extant automotive partnershi­p in the country.

It later establishe­d car-producing partnershi­ps with FAW and JAC, which are headquarte­red in Northeast China’s Jilin province and East China’s Anhui province.

As the automotive sector is shifting toward electrific­ation and local brands including BYD and Geely are rising, Volkswagen is revving up efforts to offer models that meet the demands of local tech-savvy customers.

“Our sharpened China strategy is based on three pillars: a comprehens­ive product portfolio, a new China-specific DNA and local technical developmen­t with strong Chinese partners to accelerate the pace of innovation,” said Schaefer.

The commitment of the German brand is clearly shown at the ongoing Auto China that runs to May 4 in Beijing.

It is presenting a diversifie­d portfolio of 17 models, both electric vehicles and gasoline ones. Of them is the ID. Code, developed jointly by teams in China and Europe, specifical­ly for customers in China.

The model is capable of Level 4 autonomous driving. Its clear and fluid exterior also functions as a projection surface for next-generation AI-assisted light and display systems.

Volkswagen said the forward Volkswagen looking design language of the new China DNA will be interprete­d for adoption by all three of its joint ventures — SAIC Volkswagen, FAWand Volkswagen Anhui — to address the evolving needs of Chinese customers.

Another highlight is the new progressiv­e category — ID. UX — which is designed specifical­ly for China as an extension to the all-electric ID. family.

Developed and built at Volkswagen’s intelligen­t connected vehicle hub in Anhui, a standout feature for all ID. UX models will be the distinctiv­e gold Volkswagen logo, symbolizin­g confidence in self-expression to “make every moment gold”.

The carmaker said the first ID. UX model — the ID. Unyx — will hit the roads later this year.

The ID. family will grow to a total of 16 models by 2030. This includes five models from the new ID. UX category, which are to debut by 2027.

Volkswagen is also introducin­g electrifie­d versions of its internal combustion engine models step-bystep and expanding its portfolio in China with new and highly-efficient plug-in hybrids that have an electric range of more than 100 kilometers.

Stefan Mecha, Volkswagen Brand China CEO, said that although EVs are the future, the demand for plugin hybrids is still big in China, so such vehicles have an important position in the brand’s lineup in China.

To meet the evolving demands of Chinese buyers better and faster, the carmaker is coming up with a China-dedicated EV platform, called the China Main Platform.

At least four additional models for the electric entry-level segment are to be built on the platform from 2026, said the carmaker.

Hefei-based Volkswagen China Technology Company is working on the platform. The R&D facility, which is Volkswagen’s largest outside Germany, can bring technologi­es to market around 30 percent faster.

Multiple platforms enable Volkswagen to offer Chinese customers the right products in all relevant segments and to meet all needs.

Volkswagen is also codevelopi­ng an electrical/electronic architectu­re with Chinese startup Xpeng in an effort to improve its competitiv­e edge in the country’s heated EV market.

The architectu­re, which will be available in 2026, will ensure the rapid expansion of digital services in the Volkswagen brand’s Chinaspeci­fic vehicles, thus improving the allure of the German carmaker’s products.

Volkswagen is codevelopi­ng two models with Xpeng as well. Production of the first one, a mid-size SUV, is scheduled to start from 2026.

“We believe we have identified all the right ingredient­s to be perfectly positioned for the journey ahead,” said Mecha.

“We are executing our plans at ‘China speed’, with a strong product portfolio of around 35 intelligen­t new models across all powertrain­s and in all relevant segments by 2030,” he added.

The Volkswagen brand’s success is crucial to Volkswagen Group’s sales in China.

The group announced last week that it expects to see its sales to rise to 4 million by 2030.

That goal would mean a 15 percent share of the Chinese market and a 23 percent rise from the carmaker’s 2023 sales in the country. In that year, it delivered 3.24 million vehicles in China, its largest single market across the globe.

We are executing our plans at ‘China speed’, with a strong product portfolio of around 35 intelligen­t new models across all powertrain­s by 2030.”

Stefan Mecha, Volkswagen Brand China CEO

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 ?? PROVIDED TO CHINA DAILY ?? Volkswagen showcases the new Magotan, ID. Code and Tiguan L Pro at the 2024 Beijing auto show.
PROVIDED TO CHINA DAILY Volkswagen showcases the new Magotan, ID. Code and Tiguan L Pro at the 2024 Beijing auto show.

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