Volkswagen Group 'fully committed to China', says top executive

Volkswagen AG is driving home its "In China, for China" strategy by stressing its commitment to offer tailor-made intelligent connected products for the world's largest vehicle market with accelerated technical localization, as well as faster development and production.

The German group is showcasing an impressive lineup of 44 automobile and motorbike models at Auto China 2024, bearing marques ranging from Volkswagen and Audi to Porsche and Bentley. They include six world premieres, five China premieres and a total of 18 new energy vehicle models.

"The Volkswagen Group is fully committed to China, the powerhouse of the global automotive industry. As the number one international OEM in the market, we are setting out on a long-distance race to transform the automotive industry from a position of strength," said Oliver Blume, chairman of the board of management of Volkswagen AG.

"We have a clear ambition to remain the leading international car manufacturer in China and we are accelerating our speed of innovation with our Chinese partners. At Auto China 2024, we provide thrilling proof of our innovation strength. We operate in China, for China."

Ralf Brandstaetter, board member of Volkswagen AG for China, added: "With a clear focus on electrification and show-stopping reveals of China-specific models, we are underlining our strong 'In China, for China' strategy. We continue to transform our portfolio to strengthen our market position, tapping new consumer groups while catering to the needs of our Chinese customers with state-of-the-art products."

At Auto China 2024, Volkswagen is showcasing ID. CODE, a concept car tailored for Chinese consumers. ID. UNYX, a new, progressive member of the ID. family — to be produced by Volkswagen Anhui — is also debuting at the show, expanding the brand's all-electric ID. portfolio in China. In addition, two all-new ICE models, featuring the latest technologies for improved efficiency and digitalization will be unveiled, along with three models from the Jetta sub-brand.

Meanwhile, Audi is debuting multiple all-new electric models, highlighting its ongoing determination to deliver premium electric mobility with deepened commitment to China. Its first market-specific model based on the PPE platform and new E3 1.2 architecture, the Q6L e-tron, is making its world premiere at the show, while other highlights include the China premiere of the SQ6 e-tron and the Q5 e-tron RS edition.

Porsche's new Taycan 4, tailored specifically for the Chinese market, is likewise making its world premiere. The new model combines higher performance with fully improved luxury and comfort equipment, aiming to meet the needs of Chinese consumers for a more powerful and practical sports car. The all-electric Macan, with its characteristic Porsche performance, progressive yet timeless design, long-distance range and high everyday practicality, is another example of an all-electric luxury sports SUV.

Bentley is presenting its latest product portfolio at Auto China 2024, with all cars on display crafted by its personal commissioning division, Mulliner, with the Bentley Batur one major highlight. Lamborghini is premiering a plug-in hybrid model, the Lamborghini Urus SE. Meanwhile, Ducati is showcasing the limited edition Ducati Diavel for Bentley at the auto show.

'In China, for China'

Under its "In China, for China "strategy, the Volkswagen Group is accelerating its development to "China speed" by strengthening local development capacities for e-mobility, digitalization and autonomous driving, and accelerating its decision-making and development processes in the region. This will allow the company to address market-defining trends in China at an early stage and best leverage the market's growth dynamics and innovative strength.

Volkswagen recently announced it is working with Chinese startup Xpeng to introduce a new electrical/electronic architecture, which will ensure the rapid expansion of digital services in Volkswagen brand's China-specific vehicles.

Advanced features such as autonomous driving can be seamlessly integrated and continuously updated and extended "over the air". At the same time, the number of electronic control units in previous systems can be reduced by up to 30 percent to make its models more cost-competitive.

Volkswagen said the new digital network is envisaged to be used in locally produced VW brand electric vehicles beginning in 2026. The move will strengthen its "electric offensive" and marks its latest decisive step as one of the industry leaders in the age of intelligent connected vehicles.

"This (collaboration with Xpeng) increases efficiency, optimizes cost structures and accelerates the speed of development," Brandstaetter said. "High cost-effectiveness and a fast pace of development are crucial for our competitiveness in China's dynamic market environment. Through such efforts, we are taking on a leading role in the age of intelligent connected vehicles."

The architecture will be developed by a team of experts from Xpeng, Volkswagen China Technology Company and CARIAD China. VCTC is a development, innovation, and procurement center in the Hefei innovation hub. It bundles all of Volkswagen's development units and decision-making processes for vehicles destined for the Chinese market.

By the end of this year, more than 3,000 development and procurement experts will be working on the development of Volkswagen's new intelligent connected vehicles.

CARIAD China is Volkswagen Group China's software unit. Its target is to slash development time by up to 30 percent in order to bring innovative offerings to customers faster.