'In China for China' strategy paying off, say VW executives

Volkswagen, the namesake brand of the German carmaker, is rolling out models developed with Chinese consumers in mind, as it seeks to consolidate its position in the Chinese vehicle market.

Starting from 2026, over 20 state-of-the-art NEVs will be launched, including BEVs, PHEVs and EREVs, to suit differing customer demands in China, according to the carmaker.

It said a total of over 30 new models, including gasoline ones and NEVs, will hit the market in three years.

Thomas Schaefer, CEO of Volkswagen Passenger Cars Brand, said the changes in the past two years since Volkswagen first unveiled its new strategy in China were profound.

"In 2023, we launched the 'For China, In China' initiative, marking a new chapter in Volkswagen's presence here. Now, this strategy is fully realized,” said Schaefer at Auto Shanghai.

He said Volkswagen Group China's R&D center is staffed with over 3,000 experts, who are working on innovations tailored specifically for the Chinese market, highlighting the company's commitment to localizing technology and design.

Auto Shanghai saw several new models, including the ID. AURA, the ID. ERA and the ID. EVO, which offer a glimpse into Volkswagen's electrified future.

"We're thrilled to be here at the Shanghai auto show again," said Stefan Mecha, CEO of the Volkswagen China Passenger Cars Brand.

"This event marks a key moment for us, especially as we unveil new models that reflect Volkswagen's commitment to China's rapid transformation," he said.

China's transformation, especially in electric and smart technology, has been swift and monumental.

"China is not only our largest single market but also the core of our electrification and digitalization transformation. We are ramping up our investment here, working closely with local partners to innovate and tailor products for Chinese consumers," Schaefer added.

He said China's strategic importance will only increase with time. “We see the incredible demand for intelligent technologies among Chinese consumers, especially the younger generations, which is influencing both our local and global product development."

The company is focusing on local partnerships to co-develop technologies and products, particularly in smart driving systems and user experience.

"We are in deep collaboration with Horizon Robotics and other Chinese tech leaders to ensure our products meet the unique demands of the Chinese market," said Mecha.

He also emphasized that despite the fierce competition and price wars in China, Volkswagen's strategy remains focused on value, quality, and long-term growth.

"Our goal is not to get caught in a price war but to offer value through innovation and product quality," said Mecha. "We're committed to providing strong, competitive products in the long run, with a focus on sustainability and consumer trust."