How does Volkswagen plan to expand in China?
by accelerating development through localized research and development (R&D) efforts and strategic partnerships with domestic technology firms.
Despite being a dominant player in China’s overall car market, Volkswagen faces a challenge in the electric vehicle (EV) segment. Last year, they sold approximately 155,000 EVs in China, while Chinese automaker BYD sold 1.3 million EVs, helping them surpass Volkswagen as the country’s best-selling car brand in 20231.
Volkswagen is adopting a strategy centered around “in China, for China”
To address the above, Volkswagen has some plans in the pipeline:
- ID UX Sub-Brand: Volkswagen plans to launch a new sub-brand called ID UX, targeting affluent young customers in China’s major cities. This move aims to appeal to a broader audience with intelligent connected vehicles, according to AutoCar.
- Partnerships and Collaboration: The company is partnering with rising start-up Xpeng and other local tech firms to enhance its EV offerings. By collaborating with these companies, Volkswagen aims to bring more design-oriented and technology-focused vehicles to the Chinese market.
- Product Line Expansion: Volkswagen intends to introduce over 30 new cars in China by 2030, including 16 EVs, four plug-in hybrids, and 12 internal combustion engine (ICE) cars, according to Car Scoops.
Among these, the ID Code and the first ID UX model (called the ID Unyx) will play a crucial role in their EV portfolio, according to Volkswagen.The ID Unyx will be built on the existing MEB platform by Volkswagen Anhui (formerly a joint venture with Chinese firm JAC) and will serve as a rebadged version of the Cupra Tavascan.
Volkswagen’s rich history in China, combined with its commitment to innovation and localization, positions it well to navigate the evolving landscape of electric mobility in the country. Who knows what else Volkswagen might have up its sleeve, time will tell and we’re here for it.
