In a bold move to capture a significant portion of the world’s largest auto market, Volkswagen is set to introduce 16 new models to its ID family of electric vehicles in China by 2030. This ambitious plan includes five all-electric vehicles specifically designed for the Chinese market, scheduled to arrive by 2027. Additionally, Volkswagen will expand its range with twelve new gas-powered engine models and six hybrid models before the end of the decade. To strengthen its research and development capabilities in China, Volkswagen aims to grow its team in Anhui province to 3,000 employees by the year’s end, anticipating the completion of a new platform design by 2026. The first model to grace the market will be the ID.4 X, a crossover SUV featuring a 3D avatar and augmented reality navigation, expected to launch in China later this year. Volkswagen’s strategy extends beyond expanding its product line. The company seeks to foster relationships with local automakers, including Xpeng, Thundersoft, and Horizon Robotics. Xpeng and Volkswagen will collaborate on two new mid-class vehicles by 2026, while Horizon and Volkswagen’s joint venture will focus on developing autonomous driving and infotainment systems. Thomas Schäfer, CEO of Volkswagen, expressed confidence in the company’s success in China, stating, ‘The Volkswagen brand can already look back on 40 years of success in China, and we are continuing this success story into the new mobility era, thus confirming the trust of our Chinese customers.’ This push towards dominance in China aligns with Volkswagen’s ‘in China, for China’ strategy, prioritizing accelerated model development and catering to Chinese customer preferences. In 2022, BYD overtook Volkswagen as the best-selling car brand in China. Volkswagen’s market share declined from 19.3% in 2020 to 14.5% last year, largely due to a decrease in gas-powered car sales. To regain its position, Volkswagen aims to boost its market share to 15%, targeting sales of approximately 4 million cars in China annually by 2030. Volkswagen has already made progress in the first quarter of 2023, selling 698,000 units, representing a 7.6% increase year-over-year. However, the company acknowledges the challenges ahead as China’s auto market faces intense price competition, particularly from BYD. Ralf Brandstaetter, a Volkswagen management board member and head of the China division, recognized the ongoing price war, stating, ‘We expect in the next years, the next two years especially, that this price war will continue.’ Despite these challenges, Volkswagen remains determined to conquer the Chinese auto market with its ambitious electric vehicle expansion and strategic partnerships.
Volkswagen Aims to Conquer China’s Auto Market with Ambitious Electric Vehicle Expansion
