About Volkswagen Group China

For more than 40 years, Volkswagen Group and its brands have been actively shaping mobility in China. As one of the first and the most successful international automotive manufacturers operating in the Chinese market, the Group has grown together with its Chinese partners and made individual mobility possible for over 50 million Chinese customers — a customer base unmatched by any other domestic or international automaker in the Chinese market.

Today, Volkswagen Group China operates a fully integrated automotive business spanning the entire value chain. Its business scope includes the development and testing, production, sales and services of vehicles and components. The Group is represented by a diverse array of brands across all segments, including Volkswagen, Audi, ŠKODA, JETTA, Porsche, Bentley, Lamborghini, Ducati, MAN and SCANIA.

Looking ahead, in the fast-growing Chinese automotive market, the Volkswagen Group is accelerating its “In China, for China” transformation and actively engaging in the highly competitive Chinese electric mobility market. With a robust, forward-looking product and technology portfolio, the Group is committed to consolidating its position as the top international OEM in China and playing a leading role in China’s intelligent, connected vehicle (ICV) era, continuing to grow together with China’s automotive industry.

Volkswagen Group has played a pioneering role in China’s automotive development, building a legacy rooted in long-term partnerships and shared growth. The company’s success story in China began in 1978, when Chinese partners first made contact with the Volkswagen Group. In 1984, SAIC VOLKSWAGEN Automotive Co., Ltd., the Group’s first joint venture in China, was established, laying the foundation for its long-term presence in the market. This was followed by the formation of FAW-Volkswagen Automotive Co., Ltd. in 1991. Alongside its two existing joint ventures in China, in 2017, the Group and JAC Automobile Group established the joint venture Volkswagen (Anhui) Automotive Co., Ltd. (formerly known as JAC Volkswagen Automotive Co., Ltd.) focusing on manufacturing of New Energy Vehicles (NEV). In 2021, the Audi FAW NEV Company was incorporated, focusing on the manufacture of premium NEVs in China.

With more than 30 plants nationwide manufacturing vehicles and components, the Group operates one of the most extensive production networks in China. Together with its joint venture partners, it delivered over 2.69 million vehicles in the Chinese market in 2025.

As China leads the global transformation toward intelligent and connected mobility, Volkswagen Group is accelerating its “In China, for China” strategy and “Target Picture 2030” to maintain its leadership position in this attractive growth market:
• Increasing technical localization
• Shortening development cycles
• Optimizing cost structures through local R&D and local supply
• Deepening customer orientation through locally developed products

As a core pillar in this strategy, in 2023, the Volkswagen Group established its largest R&D center outside Germany in Hefei, the Volkswagen Group China Technology Company (VCTC). VCTC plays a central role in developing intelligent connected vehicles tailored to Chinese customers, and enables faster decision-making, shorter development cycles and deeper integration into China’s innovation ecosystem by bringing end-to-end development capabilities in-house.

The core tasks of VCTC include leading the development of the Group’s first zonal E/E architecture in China, the China Electronic Architecture (CEA1), and the Group’s first new energy vehicle platform developed in China, the Compact Main Platform (CMP1). As part of the CEA development process, the Group’s software center, CARIAD China, contributes its software expertise by developing localized solutions for advanced driving assistance systems (ADAS), connectivity and infotainment in close collaboration with Chinese high-tech partners.

Together, CEA and CMP form the scalable technological backbone for Volkswagen Group’s next-generation intelligent and connected vehicles in China. The integration of CEA and CMP has reduced R&D cycles by 30% and optimized costs by 40%, significantly improving development speed and competitiveness. Starting in 2026, CEA will be rolled out on the Volkswagen brand’s locally produced fully electric vehicles, with expansion to models across all major powertrain types from 2027 onwards.

Focusing on meeting Chinese customers’ demand for a smarter, safer, and smoother driving experience, Volkswagen Group is further strengthening its competence in Advanced Driver Assistance Systems (ADAS) and future autonomous driving (AD). As the Group’s intelligent driving competence center in China, CARIZON is the joint venture between CARIAD and Horizon Robotics. CARIZON will independently design and develop a system-on-chip (SoC), further enhancing the Group’s intelligent driving capability and improving safety and scalability.

Volkswagen Group China is pursuing a clear growth plan with its 'in China, for China' strategy in a market with strong growth potential. In this context, Volkswagen Group China aims to consolidate its position as the top international OEM in China and play a leading role in China’s ICV era.

Looking ahead, Volkswagen Group China has a comprehensive product roadmap aligned with evolving customer demand and segment growth. In 2026 alone, the Group brands plan to launch more than 20 pure electric, plug-in hybrid and extended-range models in China, equipped with advanced electrification and intelligent technologies. By 2030, the Group brands will offer about 50 NEV models, including around 30 pure electric models, while continuously hybridizing and digitizing its iconic internal combustion engine (ICE) models to create a smart NEV fleet for the customers across all segments.

With the “In China for China” approach and the “regenerate+” sustainability strategy, Volkswagen Group China not only offers high-quality products and services to the consumers, but also drives forward its transformation in an economically-sustainable, ecologically and socially responsible approach.

Volkswagen Group China supports the groupwide targets of carbon neutrality, electric drive and circular economy. By 2030, 100 percent of the external electricity supply at all plants in China is to come from CO2-neutral sources. By 2040, all production sites in China are aiming to achieve balance-sheet carbon neutrality. In doing so, Volkswagen Group China supports the company’s goal of achieving balance-sheet CO2 neutrality across all areas and throughout the entire lifecycle of its vehicles by 2050.

Having been deeply rooted in China for more than 40 years, the Group is committed to shouldering its social responsibilities. The Group has donated around RMB 300 million to various areas including ecology, education, arts, culture and sports, and social care, contributing to the sustainable development of ecology and society in China.

By continuously leveraging advanced and eco-friendly technologies and products to China, as well as providing professional services to customers, the Volkswagen Group is creating sustainable benefits for both society and the environment - today and for generations to come.

References：
1. Smart vehicles at ‘China speed’: Volkswagen develops high-performance E/E architecture for electric vehicles in China with XPENG
2. Intelligent and Fully Connected: Volkswagen and XPENG Expand Software Cooperation in China to Include Vehicles with Conventional Powertrains