NEWS

Beijing, April 11, 2024: The Volkswagen Group has been a pioneer for individual mobility in China for 40 years. Today, Volkswagen's network in China features 39 plants, 90,000 employees and around 50 million customers who drive a Group brand vehicle. Together with its Joint Venture partners, Volkswagen is an integral part of China's industrial ecosystem and has created strong foundations. With its rapid transformation towards fully connected electric mobility, the Group is consistently realigning its activities in the region. Through the consistent implementation of its 'In China, for China' strategy, Volkswagen is driving forward the localisation of development and aligning its products with changing customer needs. In the latest strategic milestone, Volkswagen is further expanding its production and innovation hub in Hefei, Anhui Province, with investments totaling 2.5 billion EUR. In addition to the expansion of R&D capacity, preparations are also being made for the production of two Volkswagen brand models, which are currently being developed together with Chinese partner XPENG. Production of the first model, an SUV in the mid-size segment, will begin as early as 2026. 

The additional models accelerate the electrification of the Volkswagen Group's model portfolio in China. By 2030, more than 30 all-electric models of all Group brands will be on offer in China alone. Volkswagen China Technology Company (VCTC), the Group’s 100% owned subsidiary based in Hefei, is the central unit responsible for product localization and, in close collaboration with the Joint Ventures, has taken on central development tasks. VCTC is also developing the first China-specific electric architecture, the China Main Platform (CMP), on which at least four additional models for the electric entry-level segment in the compact class will be built from 2026.

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China: “Today, around 50 million customers in China drive a Group product. The basis for our success is the cooperation with our strong Joint Venture partners, SAIC and FAW. Together, we are now accelerating the transformation towards smart electric mobility. With our ‘In China, for China’ strategy, we have a strong plan and are accelerating the realignment of our business, with more customer focus, more speed and more local development. Our new production and development hub in Hefei will bring technologies to market around 30 percent faster in the future. This additional investment in the site underlines our ambition to quickly expand our local innovative strength.”

Clear strategic focus on Chinese customers creates a strong basis for the future 

Over the past four decades, the Volkswagen Group, together with its long-standing Chinese partners SAIC and FAW, has directly aligned its strategy to the needs of Chinese customers. With Santana and Jetta, millions of customers were able to start their individual mobility journey. Later, the first China-specific models, such as Lavida and Sagitar, became million sellers and are still hugely successful in the market today. 

As early as 2017, the Group’s electrification strategy was launched in China. In the same year, China's first pure Joint Venture for electric vehicles was founded in Hefei, Anhui Province, with the manufacturer JAC. Today, Volkswagen Anhui is the Volkswagen Group’s first majority-owned Joint Venture for cars in China. The site in the eastern Chinese province is the Group's production, development and procurement centre in China and will be expanded into a strategic innovation hub in China, for China.

With its ‘In China, for China’ strategy, the Volkswagen Group is embracing the market’s dynamic development and using its innovative strength for its accelerated transformation in China through a high degree of localisation. By building up its own development capacities and partnerships with local high-tech companies ,as well as with Chinese manufacturers such as XPENG and SAIC, the Group is not only expanding its product portfolio with additional electric vehicles, but also bringing state-of-the-art local technologies into its models at 'China Speed'. As a result, development times will be reduced by more than 30 percent and products will be tailored entirely to the specific requirements of our Chinese customers.  

40 years, 39 plants and around 50 million customers - Volkswagen has a strong foundation in China

In China's highly competitive market environment, the Volkswagen Group can rely on its strong market position. Not only is the Group the clear market leader in China in terms of new registrations, it is also the clear leader in terms of vehicles in operation (PARC): around 50 million customers now drive a car produced by the Group brands. In addition, brand loyalty is above the market average for the Group's locally produced Audi and Volkswagen models, for example. As a result, Volkswagen's 40-year presence in China is an advantage in this dynamically developing market.    

More than 3,500 dealers in the nationwide retail network are the point of contact for customers of the Group's brands. Customers can choose from around 160 passenger car models from the Audi, Volkswagen, Porsche, ŠKODA, Bentley and Lamborghini brands - and the motorcycle manufacturer Ducati also offers ten of its models in China. 

Volkswagen has 39 plants in China, making it an integral part of the country's industrial ecosystem. Strong partnerships connect the Volkswagen Group with the Chinese high-tech companies Horizon Robotics (autonomous driving functions), ThunderSoft (infotainment) and ARK (user experience). Over 90,000 employees work for the Group in China, making Volkswagen the largest European employer in China. 

Volkswagen China Technology Company (VCTC) in Hefei is the central unit responsible for product localization

VW Santana – the first model of SAIC VOLKSWAGEN

First Jetta produced by FAW-VW

Volkswagen and XPENG are jointly developing two Volkswagen brand models China-specific vehicles. Production of the first model, a mid-size SUV, will begin in Hefei in 2026.