Volkswagen Group and China’s FAW Group recently inked a strategic cooperation agreement at Volkswagen’s headquarters in Wolfsburg, Germany, outlining the future plans of their joint venture, FAW-Volkswagen. This agreement solidifies the product roadmap of FAW-Volkswagen through 2030, with the launch of 11 new models from 2026 under the Volkswagen and Jetta brands.
Among these 11 models, 10 will be new energy vehicles (NEVs), with one model being an internal combustion engine vehicle. The NEV lineup includes six battery electric vehicle (BEV) models, two plug-in hybrid electric vehicle (PHEV) models, and two extended-range electric vehicle (EREV) models. The Jetta brand is set to introduce its first electric model in 2026, targeting the entry-level EV market.
To meet the market demand for BEVs and PHEVs, FAW-Volkswagen will utilize the locally developed China Main Platform (CMP) vehicle platform. Additionally, the high-performance China Electronic Architecture (CEA) electrical and electronic architecture will bring advanced digital services and Advanced Driver Assistance System (ADAS) capabilities to customers.
Volkswagen’s software arm, Carizon, will enhance its ADAS solutions with AI for smart driving capabilities, covering both highways and city roads. The plan to launch EREVs is particularly noteworthy, given Volkswagen’s previous skepticism about the technology. However, the shift in strategy reflects the evolving landscape of the electric vehicle market.
In the past, Volkswagen’s stance on EREVs was less optimistic, with former Volkswagen China CEO Stephan Wöllenstein expressing doubts about their environmental benefits. This skepticism had sparked a response from Li Auto, a key player in the EREV space, challenging Volkswagen to compare the performance of their EREVs against the Li One model.
As Li Auto continues to succeed in the EREV segment, many other automakers have followed suit by launching their own EREV models. This trend underscores the growing significance of extended-range electric vehicles in the automotive industry.
Moving forward, FAW-Volkswagen’s new lineup of BEV, PHEV, and EREV models will cater to the evolving preferences of Chinese car owners, aligning with Volkswagen’s “In China, For China” strategy. The upcoming Shanghai auto show will provide a platform for Volkswagen to showcase its latest offerings tailored to the Chinese market, highlighting the company’s commitment to innovation and sustainability in the electric vehicle sector.
