Volkswagen is no longer the leader in the Chinese automotive market: at the end of 2022, the local giant BYD took away this title from him. The failure is primarily attributed to weak sales of Volkswagen electric vehicles, while “electric trains” and hybrids of local manufacturers show explosive sales growth, displacing traditional cars with internal combustion engines.
An electric vehicle engineering center, opened last summer in the Chinese city of Hefei, should correct the situation. The Volkswagen China Technology Company (VCTC) complex cost $ 1.1 billion, 1,200 jobs have already been created, and by the end of 2024 the staff should be expanded to 3,000 employees. The first priority for VCTC will be the development of a new platform for local electric vehicles.
Volkswagen China Technology Company
According to the head of the local representative office of Volkswagen, Ralph Brandstetter, the Chinese market is very sensitive to prices. This is confirmed by statistics: after the July price reduction, monthly sales increased from 2,200 to 10,000 copies. However, a further reduction in prices for existing ID models and a reduction in profitability is not the best way out. That’s why we needed a new cheap platform and electric cars on it.
Three years have been allotted for the development of this trolley, and it will become a further development of the well-known MEB platform, and the main emphasis will be placed on extensive cooperation with Chinese engineers and suppliers: localization should reach 100%. For example, the transition to displays and electronics from local manufacturers has reduced the purchase price by 40%. Chinese specialists, in turn, will ensure a high speed of development of the new platform.
The first electric cars on it should appear in 2026, and the plan includes four models in total. The approximate price range of these electric vehicles is from 140,000 to 170,000 yuan (19570-23760 dollars). The machines will be produced by existing joint ventures with SAIC and FAW concerns.