Volkswagen announces affordable EV strategy for China
Volkswagen plans to offer affordable electric vehicles in the Chinese market with its new strategy focused on local production.
Volkswagen is taking a strategic leap in the Chinese electric vehicle (EV) market by introducing an innovative and cost-effective platform. This move is a part of the company's larger plan to consolidate its presence in China, a country experiencing rapid growth in the EV sector.
Central to Volkswagen's strategy is the creation of a new entry-level platform, named the “A Main Platform,” designed specifically for the Chinese market. This platform aims to lower production costs, a critical consideration in China's price-sensitive market. A key aspect of this strategy involves leveraging locally sourced components to make EVs more affordable for consumers.
Ralf Brandstaetter, the China chief of Volkswagen, announced this development during the inauguration of the Volkswagen Group China Technology Company (VCTC) in Hefei. The new EV development and procurement center is part of a significant investment of $1.1 billion in VCTC, expected to create over 2,000 jobs.
Volkswagen announces affordable EV strategy for China
Volkswagen's focus on affordable EVs in China comes at a pivotal moment. The company has faced stiff competition from domestic manufacturers like BYD, especially with declining sales of gasoline vehicles. In response, Volkswagen has reduced the prices of its ID.3 model in China, resulting in a notable increase in sales.
The new platform is an adaptation of the existing Modular Electric Drive Toolkit (MEB) and is expected to be operational by 2026. This rapid development reflects Volkswagen's commitment to quickly respond to market needs.
Additionally, Volkswagen plans to launch four models based on this new platform in collaboration with its joint ventures with SAIC and FAW. The company is also partnering with XPeng to develop two more all-electric models, thereby expanding its EV portfolio. This strategy extends beyond China, as Volkswagen aims to introduce ten new all-electric cars globally by 2026, emphasizing its dedication to electrification and sustainable mobility.
Honor Watch 4 comes in Monet Purple color optionSmart Watch
