Volkswagen Group and SAIC Motor have announced an extension of their joint venture agreement until the year 2040, signifying a long-term commitment to collaboration in the ever-evolving Chinese automotive market. This extension provides early planning security beyond 2030 and aims to position SAIC VOLKSWAGEN as a leader in the era of intelligent, fully connected electric vehicles.
Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, emphasized the importance of the partnership with SAIC and the significance of the Chinese market for the Volkswagen Group. The goal is to accelerate the transformation of SAIC VOLKSWAGEN across product portfolio, production, and decarbonization, ensuring economic and technological sustainability. Brandstätter highlighted the focus on bringing a new generation of electrified vehicles to the market by 2026.
Wang Xiaoqiu, Chairman of SAIC Motor, echoed the sentiment, emphasizing the trends of electrification and smart vehicle transformation in the automotive industry. SAIC Motors aims to deepen and expand its cooperation with Volkswagen to develop new, intelligent electric vehicles and maintain a leading position in smart technologies. The joint venture is committed to sustainable sales growth and market leadership, contributing to the advancement of the Chinese and global automotive industry.
The extension of the joint venture agreement comes with a focus on three key areas of transformation for SAIC VOLKSWAGEN. Firstly, an expansion of the product offensive will introduce 18 new models to the market by 2030, including electric, plug-in hybrid, and range-extender variants. The production network will be optimized for efficiency and productivity, with a gradual shift towards electric vehicle production. Decarbonization initiatives aim to reduce CO2 emissions by 25% by 2030 compared to 2018 levels.
The “In China, for China” strategy of the Volkswagen Group entails strengthening local development skills in e-mobility, digitalization, and autonomous driving. The group is committed to bringing 40 new models to the Chinese market over the next three years, half of which will be electrified. By 2030, the Volkswagen Group plans to offer more than 30 electric models in China, aligning with its goal of carbon neutrality by 2050.
Overall, the extension of the joint venture agreement between Volkswagen and SAIC signifies a strategic partnership focused on innovation, sustainability, and market leadership in the dynamic Chinese automotive landscape. The collaborative efforts aim to drive the transformation towards intelligent, electric vehicles and contribute to the growth of the automotive industry in China and globally.
