FX.co ★ Volkswagen Unveils New China Strategy; To Sell 4 Mln Vehicles, Launch More Than 30 EVs By 2030

Volkswagen AG, the German automotive giant, recently detailed its updated strategy for the Chinese market. The company aims to escalate its earning to more than 2.0 billion euros by 2027, a figure which it hopes will touch approximately 3.0 billion euros by 2030. This projection includes the fully consolidated Anhui joint venture.

The firm aims to achieve a 40 percent cost reduction using its locally developed China Main Platform or CMP. By 2026, the company hopes to match local competition in the compact car segment.

Volkswagen has set a sales target of about 4 million vehicles in China by 2030, which will represent approximately 15 percent of the market share. The company aims to make every second vehicle sold an electric one by 2030.

In the next three years, Volkswagen and its various brands will launch 40 new models in China, half of which will be electric. Beyond this, the company plans to introduce over 30 BEV models until 2030. The company expects the total passenger car market to expand to above 28 million vehicles by 2030, around 6 to 7 million more than current figures.

The company presented this strategic update during its China Capital Markets Day held in Beijing. The company intends to increase its local market and customer focus, strengthen its in-house development and software capacities, and establish local partnerships. These will serve as the foundation for new product offerings with innovative technologies, the company highlighted.

The firm plans to achieve cost reduction with the help of its locally developed CMP, which is vital to match local competition in the cost-sensitive segment for battery electric or BEV compact vehicles.

Volkswagen aims to reach cost parity with local competition for entry-level compact vehicles by 2026. The company expects this segment to make up more than half the total market in the future.

Oliver Blume, the CEO of Volkswagen Group, said, “China is our second home market. We continue to develop our strategy systematically while aggressively pursuing its execution. We are concentrating on what Chinese customers want and speeding up the time-to-market of our products. In parallel, we are advancing ground-breaking technologies, enhancing cost efficiency, and deepening local partnerships."

In Germany, Volkswagen shares were trading at 120 euros, recording a 1.11% drop.