Volkswagen Unveils New China Strategy; To Sell 4 Mln Vehicles, Launch More Than 30 EVs By 2030
In an ambitious push to solidify its foothold in the world’s largest auto market, German automotive giant Volkswagen AG has revealed a comprehensive new strategy for China. The plan not only outlines a significant push towards electrification but also sets robust sales and financial targets for the coming decade.
The automaker has set its sights on a substantial increase in its proportionate operating result, aiming to surpass 2.0 billion euros by 2027, and reach around 3.0 billion euros by 2030. This includes contributions from the fully integrated Anhui joint venture, signifying a deepened commitment to the Chinese market.
A notable highlight of Volkswagen’s strategy is its goal for a 40 percent reduction in costs through the adoption of the locally developed China Main Platform (CMP). This strategic move intends to bring Volkswagen to cost parity with its local competitors in the highly competitive compact car segment by 2026.
Volkswagen’s ambitious sales targets for China include selling around 4 million vehicles by 2030, aiming for a market share of approximately 15 percent. Remarkably, every second vehicle sold by Volkswagen in China is expected to be electric by 2030, signaling a significant shift towards sustainable mobility.
Over the next three years, Volkswagen, along with its brands, plans to introduce 40 new models to the Chinese market, with half of them being electrified vehicles. In a long-term commitment, more than 30 battery electric vehicle (BEV) models are slated for introduction by 2030. This aligns with the anticipated growth of the total passenger car market in China, which is expected to expand to more than 28 million vehicles by 2030.
The strategy update was presented during Volkswagen’s China Capital Markets Day in Beijing. It emphasizes a stronger focus on aligning with local market preferences and customer expectations through increased in-house development and software capabilities. Additionally, Volkswagen aims to strengthen its local partnerships, leveraging advanced technologies and innovative product offerings tailored for the Chinese market.
Volkswagen aims to achieve considerable cost reductions with its locally developed CMP, playing a critical role in attaining cost parity with local competitors in the price-sensitive BEV compact vehicle segment. This strategic emphasis on locally adapted solutions and competitiveness highlights Volkswagen’s commitment to establishing a strong presence in the electric vehicle market.
Volkswagen Group CEO Oliver Blume commented on the strategy, reinforcing the company’s determination to excel in the Chinese market. “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,” he stated.
This strategic pivot towards electrification and local market adaptation underlines Volkswagen’s commitment to maintaining a prominent position in the fast-evolving Chinese automotive market, while pushing the boundaries of innovation and sustainability.
