SAIC Volkswagen changing gears for a new start after 40 years in China

SAIC Volkswagan will take bold steps to innovate in the next two to three years as the Sino-German automobile joint venture celebrated its 40-year success in China.

"Forty is the right age to make a difference," Wang Xiaoqiu, chairman of SAIC, said during a ceremony celebrating SAIC Volkswagen's 40th anniversary at its Anting base in suburban Shanghai on Monday.

SAIC Volkswagen will launch new hybrid cars based on a new platform, while the first model of Audi's new premium electric brand, AUDI, will be introduced to the market next year with exclusive production at SAIC Volkswagen Co Ltd No. 2 Auto Plant in Anting, Jiading District.

From 2026, SAIC Volkswagen will launch two electric vehicles based on the China Main Platform (CMP), three plug-in hybrid models, and two range-extended versions.

By 2030, SAIC Volkswagen will launch a total of 18 new models, 15 of which will be developed exclusively for the Chinese market.

SAIC Group has extended its joint venture (JV) agreement with Volkswagen Group in Shanghai to 2040 in a continuously deepening cooperation.

China's auto industry has entered a "new JV era" as Chinese enterprises are playing an increasingly important role. The change can be seen from the previous cooperation between Volkswagen and Xpeng, Stellanti and Leapmotor, as an increasing number of Chinese firms have become technology exporters in the new wave of JV cooperation.

Zhang Shulin, former executive vice president of the China Association of Automobile Manufacturers (CAAM), believes that the future of auto JVs in the new-energy field should not be underestimated.

"Joint ventures have solid technical strength and brand influence based on their past glory. If they can learn the new know-how, and make use of up-to-date Chinese technology and industrial chain, they will quickly form a latecomer advantage to grab the opportunities in a well-developing NEV market in China," Zhang noted.