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CHN | Apr 19, 2024

Volkswagen speeds up investment in electric vehicles in China

/ Our Today

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Volkswagen Group announced its strategy to introduce 30 all-electric models across its brands in the Chinese electric vehicle (EV) market by 2030.

This move comes in response to China’s surging demand for new energy vehicles (NEVs), as reported by the China Association of Automobile Manufacturers.

The China Association of Automobile Manufacturers says production of new energy vehicles (NEVs) exceeded 9.58 million and sales exceeded 9.49 million units in 2023.

China’s production and sales of NEVs accounted for more than 60 per cent of the world’s total last year and has maintained its position as the world leader in this sector for nine consecutive years.

People walk past an ID. Store X showroom of SAIC Volkswagen in Chengdu, Sichuan province, ChinaJanuary 10, 2021. Picture taken January 10, 2021. (File Photo: REUTERS/Yilei Sun)

Volkswagen’s commitment to the Chinese market with its “In China, for China” approach tailors its offerings to meet the specific needs of Chinese consumers. As part of this strategy, the automotive giant is intensifying its efforts in localisation and product alignment.

Volkswagen is further expanding its production and innovation hub in Hefei, Anhui Province, China. capital of east China’s Anhui Province, with investments totalling 2.5 billion euros.

Central to Volkswagen’s localisation strategy is its subsidiary, Volkswagen (China) Technology Company (VCTC), headquartered in Hefei. VCTC plays a role in product localisation and central development tasks, including the development of the China Main Platform (CMP), a dedicated electric architecture tailored for the Chinese market where at least four additional models for the electric entry-level segment in the compact class will be built from 2026.

In addition to research and development capacity expansion, Volkswagen is collaborating with Chinese partner Xpeng to develop two brand-specific models, with the production of the first model, a mid-size SUV set to begin as early as 2026.

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