VW extends China chief's contract as NEV strategy gains pace

Volkswagen AG has extended the contract of Ralf Brandstaetter, its group board member for China, through 2028, reaffirming its commitment to China as it deepens its localization strategy and prepares for a wave of new energy vehicle launches.

The early renewal, approved by the supervisory board on July 4, comes at a critical juncture for Volkswagen Group China, which is implementing its "In China, for China" strategy to sharpen competitiveness and accelerate electrification.

Brandstaetter has been a key architect of this transformation as chairman and CEO of Volkswagen Group China.

He has led foundational changes to the group's local operating model, with a focus on speeding up decision-making, enhancing software and R&D localization, and developing China-specific product portfolios.

"The early extension is a clear sign of trust and long-term support for the strategic course we've taken in China," the supervisory board said. "Continuity in leadership will be critical to realizing our product roadmap and enhancing our competitive edge in the region."

Under the group's roadmap, Volkswagen plans to introduce more than 20 all-new intelligent connected models in China by 2026, spanning internal combustion, battery electric, plug-in hybrid, and range-extender formats.

By 2027, around 30 NEV models will be available in the Chinese market, rising to approximately 50 by 2030, including 30 purely electric models.

This acceleration comes as China's auto market continues to grow at a rapid pace, driven by surging demand for electrified vehicles.

According to data from the China Association of Automobile Manufacturers, the country produced and sold over 15 million vehicles in the first half of 2025, both up more than 10 percent year-on-year.

NEV production and sales soared to 6.97 million and 6.94 million units, respectively—marking year-on-year growth of over 40 percent. New energy vehicles now account for 44.3 percent of China's new car sales in the same period.

Against this backdrop, Volkswagen is working to regain ground and reposition itself in the fiercely competitive Chinese market.

The group delivered 1.31 million vehicles in China in the first half of 2025, a slight dip of 2.3 percent year-on-year.

However, June saw a rebound, with monthly deliveries rising 9 percent to 247,000 units, helping the group meet its internal sales targets amid continued pricing pressure.

Globally, Volkswagen AG delivered 4.41 million vehicles from January to June, representing a 1.3 percent increase year-on-year, despite challenging conditions in key markets.

The group is preparing to ramp up local deliveries of next-generation models such as the Audi E5 Sportback, Q6L e-tron, A5L, and A5L Sportback from the second half this year.

With a rapidly expanding NEV market and intensifying local competition, Volkswagen's strategy in China is increasingly seen as a bellwether for its global transformation, said analysts.

By backing Brandstaetter through 2028, the company is betting on stability, execution, and renewed relevance in a reshaped automotive landscape, they said.