Volkswagen Group and China’s FAW Group have signed a strategic cooperation agreement at the German automaker’s Wolfsburg headquarters, outlining FAW-Volkswagen’s model strategy for the coming years, Volkswagen said on Friday.
The joint venture plans to launch 11 new models from 2026, covering the Volkswagen and Jetta brands, and establishing a product roadmap through 2030, Volkswagen said in a statement. Among the planned vehicles, 10 will be new energy vehicles (NEVs), including six battery electric vehicle (BEV) models, two plug-in hybrid electric vehicle (PHEV) models, and two extended-range electric vehicle (EREV) models.
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“The Jetta brand will launch its first electric model in 2026, targeting the entry-level EV market,” Volkswagen said. The automaker added that FAW-Volkswagen would use the locally developed CMP (China Main Platform) to address demand for BEVs and PHEVs, while its high-performance CEA (China Electronic Architecture) would provide advanced digital services and driver-assistance features.
Volkswagen’s software subsidiary, Cariad, will integrate artificial intelligence into its ADAS (Advanced Driver Assistance System) solutions, extending smart driving capabilities to both highways and urban roads, according to the statement.
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FAW-Volkswagen’s expansion into EREVs follows a shift in strategy for the German automaker, which previously expressed skepticism toward the technology. In 2020, then-Volkswagen China CEO Stephan Wöllenstein dismissed EREVs as “the worst possible solution from the perspective of the entire country and the planet.” At the time, Li Auto, then the only EREV manufacturer in China, strongly disagreed, with CEO Li Xiang challenging Volkswagen to compare efficiency data.
Since then, Li Auto has gained traction in the EREV market, and other automakers have followed suit. FAW-Volkswagen will introduce EREV versions of its BEV models in the mid-size segment, aiming to meet consumer demand for extended range and electric mobility, Volkswagen said.
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The automaker will showcase its first China-focused models under the new plan at the upcoming Shanghai Auto Show. “These new models will be a concrete expression of Volkswagen’s ‘In China, For China’ strategy,” the company said.
