German automaker Volkswagen Group is ramping up its efforts to transition to electric vehicles (EVs) in order to expand its footprint in the Chinese market. Ralf Brandstatter, Chairman and CEO of Volkswagen Group China, expressed their commitment to strengthening their market position and preparing their business for the future through the e-offensive and the development of local technological capabilities.
Stefan Mecha, Head of Group Sales for Volkswagen Group China and CEO of Volkswagen Passenger Cars Brand for China, acknowledged the success achieved in the first half of 2023, despite a fierce price war in the market. Mecha highlighted the significant growth in demand for new energy vehicle (NEV) models, particularly in segments that are crucial to Volkswagen.
In the first six months of 2023, Volkswagen’s share of China’s internal combustion engine (ICE) vehicle market increased from 18 percent to 20 percent, while deliveries of NEVs rose by 4.8 percent to reach 89,700 units compared to the previous year. The total number of vehicles delivered by the automaker in the Chinese mainland and Hong Kong during the same period amounted to 1.45 million.
As part of its electrification strategy, Volkswagen Group, which encompasses brands like Audi, Lamborghini, and Bentley, plans to expand its portfolio of fully electric vehicles to 30 models by 2030, ensuring a strong market presence in China’s rapidly developing automotive landscape.
The company has several notable launches on the horizon. The ID.7 sedan is scheduled for release in the second half of this year, while Audi plans to introduce the Audi e-tron GT quattro in the coming weeks. Additionally, Audi intends to launch three new models based on the Premium Platform Electric (PPE) in 2025 and 2026. Porsche is also gearing up to unveil new luxury electric vehicles in the coming years.
Volkswagen is bolstering its research and development capabilities for e-mobility, digitalization, and autonomous driving in collaboration with Chinese high-tech firms. Partnerships with Horizon Robotics, a prominent provider of hardware and software solutions for automated driving, and ThunderSoft, a manufacturer specializing in intelligent operating systems, aim to enhance the development of advanced driver assistance systems (ADAS) and infotainment and connectivity expertise, respectively.
Recently, Volkswagen Group announced the signing of a memorandum of understanding between the Volkswagen and Audi brands and China’s FAW, signifying a deepening of their long-term cooperation. The two parties plan to integrate resources and create synergies to enhance their competitive advantages in both conventional and NEV markets.
As part of the group’s electrification transition, fuel-based models are gradually shifting towards hybridization. Audi and FAW will expand their product lineup to cater to the high-end market demand in the new era of mobility in China.
Cui Hongjian, Director of the Department for European Studies at the China Institute of International Studies, highlighted the resilient China-Germany relations, with German companies increasing their investments in China. China views Germany as a significant partner in Europe, forging a mutually beneficial alliance between the two nations.
