Volkswagen Group China plans to produce two electric cars, positioned under the VW brand, developed jointly with Xpeng Motors in Hefei, mainland China, as part of its in-China, for-China strategy. In a press note issued by the company on April 11, it said that the first of the two electric vehicle models it plans to jointly develop with Xpeng — a medium-sized electric sport utility vehicle (SUV) — is scheduled to go into production in 2026.
As part of its in-China, for-China strategy, the German carmaker has already invested €2.5 billion to further expand its production and innovation center in Hefei while strengthening its local research and development capabilities. The carmaker’s mega facility in Hefei accommodates production, R&D, and procurement functions, and will be expanded to become the group's strategic innovation center, it said.
The company expects that the new EV models will accelerate the electrification process of the group’s product matrix in mainland China, the world’s largest EV market. As such, the Volkswagen Group China plans to have more than 30 pure electric models in the mainland Chinese market by 2030.
Implementing the German carmaker’s mainland China strategy is Volkswagen (China) Technology Co. Ltd., which is wholly owned by the group and is located in Hefei. The company will be the hub for implementing product localization and will work closely with the group's joint ventures in mainland China to undertake core development tasks, it said, adding that the company is currently developing the VW Group's first EV architecture (CMP) specifically for the mainland Chinese market.
From 2026, the VW Group will rely on this platform to develop at least four EV models, catering to the compact entry-level market.
Volkswagen, which has been present in mainland China for the last 40 years, has collaborated with leading local carmakers such as SAIC Motor and FAW Group as its long-term partners. However, the Volkswagen Group launched an electrification strategy in mainland China in 2017. As part of this strategy, VW established its first EV focused JV with Jianghuai Automobile in Anhui, mainland China.
The company further said that the VW Group has 39 factories in mainland China and a network of more than 3,500 dealers across the market.
