VW defines joint venture roles in China strategy

Volkswagen brand will launch 13 new energy vehicle models in China this year, across battery electric, plug-in hybrid and range-extended segments, as part of its "In China, for China" strategy, while clarifying product roles for its three local joint ventures.

China is an arena shaping global automotive trends. Volkswagen is advancing one of the biggest product offensives in the brand's history in the world's largest auto market, said Thomas Schaefer, CEO of the Volkswagen Passenger Cars Brand, at the Volkswagen Brand Night in Beijing on Wednesday.

The brand plans to launch more than 30 all-new new energy models by 2029. By 2027, NEVs are expected to account for more than half of Volkswagen's product portfolio in China.

A faster local development system is helping support the rollout. Volkswagen China Technology Company in Hefei, Anhui province, is the brand's largest research and development center outside Germany. It has more than 3,000 experts and an investment of about 3.5 billion euros ($4.1 billion). Through its joint ventures, Volkswagen has more than 7,000 R&D staff in China, helping cut product development cycles to as little as two years.

Volkswagen Anhui, SAIC Volkswagen and FAW-Volkswagen are taking on more defined roles in the brand's latest product push. Volkswagen Anhui is focusing on pure electric products for younger buyers, with greater emphasis on design, connectivity and faster development cycles. SAIC Volkswagen is carrying the broadest powertrain mix, spanning plug-in hybrid, range-extended and battery electric vehicles to cover both urban commuting and longer-distance travel. FAW-Volkswagen, meanwhile, is focusing more on family and mainstream buyers, with an emphasis on bringing smarter electric products to the core compact segment.

That division is visible in the latest models. Volkswagen Anhui's ID. UNYX 08 shows how the company is building a younger, design-led electric lineup. The full-size pure electric SUV is Volkswagen's first model built on an 800-volt platform and can add up to 150 kilometers of range with five minutes of charging. It is the first Volkswagen model jointly developed with Chinese carmaker XPeng.

SAIC Volkswagen's ID. ERA 9X highlights the venture's role in supporting Volkswagen's broader powertrain strategy in China. As Volkswagen's first full-size range-extended SUV, it offers more than 400 km of pure electric range and more than 1,600 km of combined range under the China Light-Duty Vehicle Test Cycle.

FAW-Volkswagen's ID. AURA T6, aimed at family and mainstream buyers, is built on Volkswagen's China Electrical Architecture, bringing enhanced Level 2 driver assistance and over-the-air upgrades to the compact SUV segment.

Robert Cisek, CEO of Volkswagen Passenger Cars Brand China, said the company is combining German engineering with local innovation through electrification, flexible powertrain choices and a broader product matrix tailored to Chinese customers.

Across its next generation of models for China, Volkswagen is integrating more advanced driver-assistance systems, smart cockpit functions and over-the-air upgrades, while continuing to emphasize safety, quality and reliability. Its technology system is backed by more than 8,000 standards and over 2,500 tests. (source: China daily)