Volkswagen speeds up electrification, innovation in China

At the beginning of 2025, German automobile giant Volkswagen and Chinese new energy vehicle (NEV) maker XPENG announced their strategic collaboration on a superfast charging network in China.

Through the strategic cooperation, XPENG and Volkswagen Group China aim to provide customers with a superfast charging network featuring over 20,000 charging piles and covering 420 cities across China.

Olaf Korzinovski, executive vice president of Volkswagen Group China, said that Volkswagen is committed to fully deepening its electrification strategy and launching high-quality electric vehicle products equipped with cutting-edge technology.

The two companies are dedicated to building the largest ultra-fast charging network in China in terms of coverage, further optimizing the charging experience for customers, and making electric mobility easily integrated into people's daily lives, whether in first-tier cities or remote cities and regions, said Korzinovski.

This reflects our determination to promote the development of electric mobility in China, as well as our firm commitment to providing NEV customers with new and convenient service experiences, he added.

In 2024, Volkswagen celebrated its 40th anniversary of operations in China, and the company continued to expand its presence in the country.

"If I had to describe 2024 in one word, it would be transformation. We made significant strides in bringing our strategy to life, demonstrating our long-term commitment to China," said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China.

"Our innovation hub Volkswagen Group China Technology Company in Hefei is now fully operational, with 3,000 local engineers driving development of the next generation of intelligent connected vehicles (ICVs)," said Brandstaetter.

The company kickstarted development of China Electronic Architecture (CEA), a joint project of Volkswagen China Technology Company, Volkswagen's software unit CARIAD and XPENG. The CEA will develop a highly modern and cost-efficient electrical architecture that will be used in their vehicles from 2026.

Also, the development of Volkswagen's first China-specific Compact Main Platform is well underway, achieving 30 percent faster development and 40 percent cost efficiency.

"We also deepened partnerships with China FAW Group Co., Ltd. and Shanghai Automotive Industry Corporation (SAIC), including extending our joint venture with SAIC, planning 18 new models by 2030. Our joint venture Volkswagen Anhui has launched its first product, the ID. UNYX," he said.

With Volkswagen ID. CODE and AUDI E, two car models, the company showcased future design and technology, including the launch of the new AUDI brand for young, tech-savvy customers.

Moreover, in the internal-combustion-engine (ICE) vehicle market, Volkswagen Group had a market share of over 21 percent in China in 2024, marking the highest market share since 2005.

Last year, Volkswagen Group delivered over 2.9 million vehicles in the Chinese market, while its global vehicle deliveries surpassed 9 million, according to the German automaker.

In 2024, the company delivered more than 200,000 NEVs in China, among which the sales of ID. models increased by 17 percent year on year.

"We have reached important milestones in our consistent strategic approach, which will contribute substantially to the future competitiveness of the group in China," Brandstaetter said. "These milestones underscore our deep roots in this market. We are very proud of that!"

China's NEV production and sales both surpassed 12 million in 2024, leading the global NEV market for 10 consecutive years, according to the latest data released by the China Association of Automobile Manufacturers on Monday.

According to Volkswagen Group China, a series of new models and technologies will be launched and unveiled in China in 2025.

"We will launch the first series model of the new AUDI brand at Shanghai Autoshow, and unveil prototypes of Volkswagen models on the Compact Main Platform, equipped with our new China E-Architecture," said Brandstaetter.

"We will be focused on delivering first results of our 'In China, For China' strategy and bring it on the street," said Brandstaetter, adding that he is very confident and optimistic about the group's future in China.