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China’s Volkswagen unveils its affordable electric vehicle strategy with localized production

For a more affordable vehicle, Volkswagen is using locally sourced components.

By Newsd
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China's Volkswagen unveils its affordable electric vehicle strategy with localized production

Volkswagen introduces an innovative platform for cost-effective electric vehicles (EVs) in the Chinese market. The company is taking this step in its strategy to strengthen its presence in China, a country with a rapidly growing EV market.

For a more affordable vehicle, Volkswagen is using locally sourced components

This plan focuses on developing a new entry-level platform tailored specifically for the Chinese market. This project, dubbed “A Main Platform,” is intended to reduce production costs, which is crucial in China’s price-sensitive market. Volkswagen plans to provide consumers with more affordable EV options by increasing the use of locally sourced components.

Ralf Brandstaetter, the head of Volkswagen China, inaugurated Hefei’s Volkswagen Group China Technology Company (VCTC), a new EV development and procurement center. VCTC is expected to generate over 2,000 jobs as a result of a $1.1 billion investment.

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VW’s decision to focus on affordable EVs is timely. Recently, BYD has outperformed the brand in China, primarily due to declining gasoline sales. Volkswagen has already reduced the prices of its ID.3 model in China, increasing sales significantly.

Based on the Modular Electric Drive Toolkit (MEB), the new platform is expected to go live by 2026. Volkswagen’s commitment to adapting quickly to market demands can be seen in this accelerated timeline.

In addition, Volkswagen plans to launch four models based on this new platform, in collaboration with SAIC and FAW. The company will also develop two more electric vehicles with XPeng, expanding its EV portfolio even further. China is not the only country to make this strategic move. Volkswagen plans to introduce ten all-electric cars globally by 2026, demonstrating its commitment to electrification and sustainable mobility.

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