In a strategic move to solidify its presence in the rapidly growing Chinese electric vehicle (EV) market, Volkswagen has unveiled plans for a new platform tailored for affordable electric cars. The announcement was made by Ralf Brandstaetter, Chief of Volkswagen China, during the inauguration of the Volkswagen Group China Technology Company (VCTC) in Hefei, where an investment of approximately $1.1 billion is set to generate over 2,000 jobs.
The newly revealed platform, tentatively named the “A Main Platform,” is designed specifically for the Chinese market. Volkswagen aims to enhance cost efficiency by incorporating a higher percentage of locally sourced components compared to their existing Modular Electric Drive Toolkit (MEB)-based models in China, such as the ID.3, ID.4, ID.6, and ID.7.
The platform, derived from the MEB, is anticipated to be operational by 2026—around a third earlier than initially projected—thanks to the capabilities of the VCTC.
Brandstaetter highlighted the “price-sensitive” nature of the Chinese electric vehicle market, necessitating a focus on cost optimisation. The move comes as Volkswagen faces increased competition, with BYD surpassing the brand in sales in 2022. The decline in gasoline car sales further emphasizes the importance of affordability, and Volkswagen’s ID.3 model experienced a surge in sales after price cuts.
The new platform targets the entry-level segment, with a price range of 140,000 CNY (RM92,483) to 170,000 CNY (RM112,301). Volkswagen plans to introduce four models based on this platform, collaborating with existing joint ventures with SAIC and FAW, the manufacturers of the MEB-based models.
Additionally, Volkswagen aims to launch two all-electric models, in collaboration with Chinese EV manufacturer XPeng, starting in 2026. This aligns with the automaker’s broader goal of introducing a total of 10 new all-electric cars globally by 2026, marking a significant acceleration in their electrification strategy.
Volkswagen’s commitment to the Chinese market involves not only addressing the immediate demand for affordable electric vehicles but also fostering partnerships and expanding its electric vehicle lineup, contributing to the global shift towards sustainable mobility.
