German automaker Volkswagen (VOWG_p.DE) announced on Friday its plans to forge a new platform, the A Main Platform, tailored for entry-level electric vehicles (EVs) in the Chinese market. This strategic move is part of Volkswagen’s efforts to reclaim its position in the world’s largest auto market. The platform will cater to the preferences of Chinese consumers, incorporating locally sourced components to optimize costs.
Ralf Brandstaetter, China Chief at Volkswagen, disclosed that the A Main Platform, derived from the modular electric drive matrix (MEB), would focus on Chinese tastes concerning batteries, electric drives, and electric motors. It is slated to hit the market by 2026, a notable 33% reduction in platform development time compared to previous initiatives.
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Acknowledging the unique demands of the Chinese market, Brandstaetter highlighted the younger, tech-savvy nature of Chinese car buyers who favor an immersive digital experience in their vehicles. To meet these preferences, the new platform aims to integrate local suppliers extensively.
Volkswagen, aiming to introduce 10 additional EV models globally by 2026, plans to expedite its time to market for new models, reducing it from four years to closer to the 2.5-year average observed among Chinese counterparts. Ludger Luehrmann, Chief Technology Officer at Volkswagen Group China Technology Company (VCTC), emphasized the importance of cost efficiency in the price-sensitive Chinese market. Shifting to Chinese suppliers reportedly allowed the company to cut the price of dashboard displays by 37%.
Volkswagen’s move comes after it yielded its title as the best-selling car brand in China to BYD in the face of fierce competition from local EV manufacturers and a reliance on gasoline vehicles, whose sales have been declining in the country.
The company aims to expand its product range in China, particularly in the entry- and mid-level EV segments, to compete with more affordable local rivals. The new platform will host four models priced between 140,000 yuan ($19,400) and 170,000 yuan.
Volkswagen’s joint ventures with SAIC and FAW will oversee the production of these vehicles, as the company seeks to address the growing demand for EVs in China. The move aligns with Volkswagen’s broader ‘China for China strategy,’ evidenced by the 1 billion euros ($1.1 billion) investment in VCTC, a development and procurement center crucial to streamlining operations and reducing time-to-market for Chinese consumers.
In July, Volkswagen solidified its commitment to the Chinese EV market through a partnership with Xpeng, a Chinese EV maker. This collaboration aims to bolster Volkswagen’s EV lineup, introducing two models targeting mid-level consumers by 2026, produced on an older generation Xpeng platform.
