Volkswagen Adapts to China's EV Market with New Strategies and Models


Volkswagen AG is revamping its strategy in China to compete with local EV makers and meet the demands of a new generation of car buyers, like 26-year-old Ren Yiling, who expect digital connectivity and entertainment options in their vehicles. The German auto giant is planning to launch 40 new models in China over the next three years, including 30 EVs by 2030, to cater to a market where the average EV buyer is 35 years old and seeks advanced tech features. The company is investing 2.5 billion euros to expand R&D and production in Hefei with Chinese EV maker XPENG Motors and is developing a new EV platform specifically for China to reduce costs by 40%. Volkswagen's shift to developing cars specifically for the Chinese market comes as EV sales in China have surged, with 5.1 million units sold last year, making up 24% of new car sales. Despite challenges, including operating in China's Xinjiang region amid human rights concerns, Volkswagen is determined to adapt its offerings to the tech-savvy Chinese consumer and maintain profitability in what it considers an essential market.

This news was created based on this article.