Volkswagen makes itself at home in China with greener, smarter cars

Editor's note: China is much more than sales and returns. Over the past 30 years, China has become part of the way Volkswagen Group thinks, plans and acts, as Liu Ke reports.

Volkswagen Group recently announced it will start researching and developing battery electric vehicles in cooperation with its Chinese partner SAIC.

The main plant of the Chinese joint venture SVW in Anting, Shanghai, will be expanded to meet the new challenges associated with the local production of electric vehicle models.

With this decision, full localization of the group's electric vehicles in China is to be gradually implemented.

Volkswagen is a strong force for the development of the high-tech sector in China. Together with its partners, the company said it is consistently forging ahead with advanced, environmentally compatible technologies.

With these technologies, the company will shape the future of mobility in China, senior executives of Volkswagen said.

Volkswagen has been in China for more than 30 years, since its first joint venture Shanghai Volkswagen began locally producing the Santana.

In 2014, Volkswagen and its partners Shanghai Volkswagen and FAW-Volkswagen delivered 3.68 million vehicles in China.

The key to its success is adapting to the local market, to fulfill the special needs of customers and serve them properly, rather than simply importing a European model and pushing it on Chinese customers, according to the automaker.

Key to success

China is a fast-growing economy and the Chinese government has made efforts to enhance the quality of people's lives and environmental protection, and new-energy vehicles are indispensable in the drive toward sustainable development, according to the automaker.

To Volkswagen, further expansion of its local research and development expertise is indispensable.

The recent agreement with SAIC is part of a 22 billion euro ($24.4 billion) investment in China planned by the Volkswagen Group and its joint ventures by 2019.

That investment will enable, among other things, the localization of 15 new-energy vehicle models, or NEV models, during the same period, including plug-in hybrids and fully electric vehicles.

This year, Volkswagen will introduce the new e-Golf, Golf GTE and the Audi A3 e-tron electric vehicle models in China.

In addition to developing NEVs, Volkswagen is also working to reduce vehicle weight and gearbox efficiency to reduce emissions. Each new model in Volkswagen's range of vehicles aims to consume up to 15 percent less fuel than its predecessor.

However, it takes more than advanced vehicles to become the world's most environmentally friendly automaker. Volkswagen is also improving efficiency at its factories and across its huge supply chain.

Becoming more environmentally friendly is only one way Volkswagen is adapting to the China market.

Digitalization is another key trend driving innovation and adaptation.

By 2015, there will be 701 million Internet users in China, with a penetration rate of 51 percent. One-third of all smart phones worldwide are sold in China.

Volkswagen believes cars and computers will continue to converge and said it plans to be at the forefront of this convergence.

Knowing that Chinese consumers want to be connected at all times, Volkswagen introduced maximum networking into its cars.

At the recent Consumer Electronics Show Asia in Shanghai, Volkswagen showcased its latest developments in car connectivity, including the MirrorLink?-enabled Lamando created especially for the China market.

MirrorLink? is a platform that integrates Android apps and features into vehicle infotainment systems and was developed by a consortium of smartphone and automotive manufacturers.

In connection with MirrorLink?, Volkswagen has partnered with Chinese smartphone maker Huawei, as well as international brands, such as Samsung and Sony, and with Chinese internet giant Baidu, to produce the Baidu Navigation App, a customized app that makes personalization of the interface, colors and contrast ratio for the user much easier.

The "Trained Parking" feature uses a camera to scan the path driven during parking. After a successful scan the car can then park itself, without the driver touching the wheel, or even having to be in the car.

This is especially useful for narrow parking spaces. Currently, the technology can only be used on private property, but carmakers hope new laws will make autonomous driving legal in public spaces as well.

The company sees the car as a part of an integrated mobility system, which can improve the lifestyle of the customers living in the digital era.

Through technology and innovation it vows to improve the role cars play in people's lives and also fulfill its responsibility to Chinese society and the environment and shape the future of mobility in China.

(China Daily 06/09/2015 page7)