Volkswagen and FAW are gearing up to launch 11 new models specifically for the Chinese market through their joint venture, FAW-Volkswagen. The plan includes the introduction of ten new Volkswagen brand models, with nine of them being new energy vehicles (NEVs) starting from 2026. The lineup will consist of six pure electric models, two plug-in hybrids, two extended-range, and one fuel model.
Two electric models and two plug-in hybrids will be built on the Compact Main Platform (CMP) developed by Volkswagen Group (China) Technology Company. This platform is aimed at streamlining production processes, reducing time-to-market by 30%, and cutting costs by about 40% compared to traditional platforms. The electric models based on the CMP platform will also feature the China Electronic Architecture (CEA).
FAW-Volkswagen is set to introduce two electric models for the mid-class segment along with their range-extended variants. Additionally, a new model built on Volkswagen’s modular electric drive matrix (MEB) platform will undergo a comprehensive smart upgrade through CEA integration.
Ralf Brandstaetter, Volkswagen Group China chairman and CEO, highlighted the importance of the new technology set-up tailored specifically for China. He emphasized that this setup will enable their joint ventures to respond more quickly and effectively to new customer requirements and market changes in the future.
FAW-Volkswagen is also planning to electrify the Jetta brand, with the first electrified model expected to be launched by 2026. By 2030, the brands under FAW-Volkswagen aim to introduce over 20 all-new models to the market.
Volkswagen Group has ambitious plans to launch about 40 new models in China from 2025 to 2027, with more than half of them being electrified vehicles. In May 2024, FAW-Volkswagen Automobile unveiled its plans to invest CNY2.3bn ($324m) to introduce three new SUV models at its assembly plant in Tianjin.
The FAW-VW JV is primarily controlled by state-owned FAW Group, holding 60% of the shares, while the remaining ownership is divided among Volkswagen (25%), Audi (5%), and Volkswagen (China) Investment (10%).
Overall, Volkswagen and FAW’s strategic focus on the Chinese market underscores their commitment to innovation, sustainability, and meeting the evolving needs of Chinese customers. With a strong emphasis on electrification and new technology, the joint venture is poised for long-term sustainable growth and delivering competitive, market-driven mobility solutions in China.
