Over the past 40 years since entering the Chinese market, the Volkswagen Group has always insisted on providing high-quality localized models to Chinese customers. With the rapid development of the domestic industry towards fully connected e-mobility, the Group is accelerating the transformation of its business in China, actively implementing the "In China, For China" strategy, deepening the localization development process, and making its products more targeted to focus on changing customer needs. To this end, the Group will invest EUR 2.5 billion to further expand its production and innovation center in Hefei, strengthen its local R&D capabilities, and produce two Volkswagen-branded models in Hefei jointly developed with Xpeng Motors, the first of which is a mid-size SUV, which is scheduled to start production in 2026.
The new models will accelerate the electrification of the Group's product portfolio in China. By 2030, the Group's brands will offer more than 30 BEVs in the Chinese market. Volkswagen (China) Technology Co., Ltd., a wholly-owned subsidiary of the Group and located in Hefei, is the hub for the localization of its products and will work closely with the Group's joint ventures in China to undertake core development tasks. The company is developing the Group's first electric vehicle architecture (CMP) specifically for the Chinese market, which will be used to develop no less than four electric models for the compact entry-level market from 2026 onwards.
Volkswagen Group Managing Director for China, Chairman and CEO of Volkswagen Group China, Bratt Braed, said: "Today, around 50 million Chinese car owners drive models from the Group's brands. The foundation of this success is our many years of close cooperation with our strong local joint venture partners, SAIC and FAW. Together, we will accelerate the transition to a smart, electric era. In line with the 'In China, For China' strategy, the Volkswagen Group is accelerating the pace of business adjustment in China through a deep focus on customer needs, faster development and stronger local R&D. "Our continued investment in the Hefei Production and Innovation Center, which will accelerate the speed of bringing new technologies to market by approximately 30 percent, demonstrates our determination to rapidly strengthen our local innovation capabilities." ”
40 years: Focus on customer needs and drive the future with innovation
Over the past 40 years, the Volkswagen Group, together with its long-standing partners SAIC Motor and FAW Group, has continued to closely integrate its China development strategy with customer needs. The Santana and Jetta models have brought convenient personal mobility to tens of millions of Chinese customers, and the subsequent launch of the first batch of models exclusive to the Chinese market, such as Lavida and Sutar, has also reached millions of sales, and has been favored by the market to this day.
Since 2017, the Volkswagen Group has embarked on an electrification strategy in the Chinese market. In the same year, Volkswagen Group and JAC established the Group's first joint venture in China focusing on electric vehicles in Anhui. Volkswagen Anhui is the Group's first wholly-owned vehicle joint venture in China. The Volkswagen Group's presence in Hefei encompasses production, R&D and purchasing, and will be expanded into a strategic innovation center for the Group "in China, for China".
Adhering to the development strategy of "In China, For China", the Volkswagen Group has taken the pulse of market development, fully tapped and leveraged the innovation potential of the market, deepened localization, and accelerated its transformation in China. By strengthening its own R&D capabilities and partnering with local Chinese high-tech companies, as well as partnering with Chinese automakers such as Xpeng Motors and SAIC, the Group continues to launch new electric models, expand its product portfolio, and bring cutting-edge local technologies to its brand models at "China speed". In this way, the product development cycle will be shortened by more than 30%, and at the same time, the needs of Chinese customers will be more targeted and met.
40 years: Deeply cultivating the Chinese market and connecting 50 million customers
In the fierce competition in China, the Volkswagen Group maintains a solid market position, leading significantly in terms of new car sales and car ownership. Today, around 50 million Chinese car owners drive models from the Group's brands. In addition, the consumer loyalty of the Group's brands such as Audi and Volkswagen also exceeds the market average. Over the past 40 years, the Volkswagen Group has established a unique competitive advantage in the fast-growing Chinese market.
At present, the group has more than 3,500 dealers in China, and a strong dealer network forms a close link between the group's brands and customers. Group brands such as Volkswagen, Audi, Porsche, Skoda, Bentley and Lamborghini sell around 160 models in China, and the Ducati brand also sells 10 motorcycle models in the Chinese market.
With 39 plants in China, the Volkswagen Group is an integral part of the country's automotive industry. Building on this, the Group has established strong partnerships with Chinese high-tech companies, including working with Horizon Robotics to develop autonomous driving features, co-developing infotainment systems with Thunderda, and working with Shanghai Muchuan Industrial Design in the field of user experience. With more than 90,000 employees in China, the Volkswagen Group is the largest European company in China.
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