German legacy automaker Volkswagen has just confirmed plans to build a new electric vehicle platform for its upcoming entry-level models in the Chinese market, Reuters reports, citing VW Group China CEO’s remarks.
The move is part of the company’s strategy to compete with local models’ affordability and appeal to Chinese customers.
A Main Platform
VW Group China CEO Ralf Brandstaetter told the international news platform during the Volkswagen Group China Technology Company’s (VCTC) launch in Hefei on Friday that the company will develop an all-new platform to support the production of low-cost EVs.
The China-specific EV platform goes by the name “A Main Platform.” VW aims to source most of the platform’s necessary materials and components domestically to cut production costs.
As noted by InsideEVs, the German brand’s Chinese portfolio currently rides on the Modular Electric Drive Toolkit (MEB) platform, including the ID.3, ID.4, ID.6, and ID.7.
That said, the new platform will take inspiration from the MEB platform and finish development as early as 2026.
“With the development of a China-specific platform for the entry-level segment, we are taking on significant development tasks for our ‘in China for China’ strategy. We will bring the platform to market maturity in just 36 months. This means that we are reducing the development time by around a third and can quickly tap into new customer groups in the dynamic electric vehicles market in China.”
Ralf Brandstaetter, chairman and CEO of Volkswagen Group China
VW seeks to expand its Chinese lineup
The new platform will primarily target the entry-level segment in China, ranging from $19,570 (140,000 CNY) to 170,000 CNY ($23,760).
According to the report, VW plans to launch four new models that ride on the A Main Platform.
Interestingly, the German brand will reportedly produce these planned models with the help of its current Chinese joint ventures with FAW and SAIC.
Beyond these four models, VW also aims to produce two more battery electric vehicles with its newly formed collaboration with XPeng starting in 2026. All that said, VW will soon have six new EV offerings in the Chinese market.
Significance
CEO Brandstaetter noted that the Chinese customers are very “price-sensitive.” That said, Volkswagen must continuously work to lower the costs of its models.
Volkswagen was once the top-selling automotive brand in the world’s largest auto market. However, electric vehicle giant BYD overthrew the German brand in late 2022 due to the declining sales of gas-powered models. It is unsurprising, considering EVs only account for a small portion of its overall volume.
In order to catch up, VW has launched several price cuts in China. It boosted the brand’s monthly sales from just 2,200 units to about 10,000 units in the July to October period.
Launching new electric vehicle models is crucial for Volkswagen to stay competitive in the evolving automotive market. In China, traditional gas-powered vehicle sales continue to decline amid the shift to e-mobility. That said, having more offerings will enable the German automaker to increase its sales and market share there.
