Volkswagen is adopting an “in China, for China” strategy as it explores profitable growth in the country by developing hybrid and fully electric vehicles—collectively known as new energy vehicles.
“China is our second home market. We continue to drive our strategy forward systematically and are going on the offensive with its execution.
“We focus on our Chinese customers’ expectations and the accelerated time-to-market of our products. At the same time, we are pushing pioneering technologies, increasing cost efficiency, and deepening local partnerships,” said Volkswagen Group CEO Oliver Blume.
The German automaker launched the next phase of its plans to strengthen its position in the country during China Capital Markets Day in Beijing. The company’s main goal is to strengthen its tech capabilities and reduce costs in the Chinese auto market to achieve cost parity with local automakers in the compact car segment by 2026.
To achieve its targets, VW plans to reduce costs by 40% with its locally-developed China Main Platform (CMP), also referred to as the A Main Platform. Volkswagen’s CMP is specifically designed for Chinese consumer tastes in terms of battery, electric drive, and electric motors for battery electric vehicles (BEVs). Ralf Brandstätter—a member of the board of VW AG—noted that new car buyers in China tend to be younger, tech-savvy, and prefer immersive digital experiences in their vehicles.
If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.