(Yicai) Jan. 15 -- Volkswagen Group plans to launch a series of new models in China targeting annual sales of 3.5 million vehicles to secure around 15 percent of the local market, maintaining its position as China's leading foreign automaker by 2030, Chairman and Chief Executive Ralf Brandstätter told Yicai.

The company's China Main Platform, a strategic initiative aimed at strengthening its presence in China's rapidly evolving electric vehicle market, is progressing well, according to the China CEO of the Wolfsburg-based company, which owns brands including Porsche, Bentley, and Cupra. The platform will reduce development time by 30 percent and costs by 40 percent. The company is advancing across various development platforms to introduce new products within three years.

Despite expectations that fierce competition in China may continue or intensify price wars this year, Brandstätter emphasized that Volkswagen will prioritize profitability over sales growth, as the company continues investing in future technologies and products with a focus on long-term objectives.

Last year, Volkswagen delivered around nine million vehicles worldwide, with 2.9 million in the Chinese market, representing a nearly 10 percent decline from 2023. However, EV sales exceeded 200,000 units, with sales of Volkswagen's ID-branded pure electric models increasing by 17 percent.

Proactive Transformation

Brandstätter noted that the Chinese market's rapid development and strong innovation capabilities require automakers to be proactive.

Volkswagen expects to reach key transformation milestones between mid-2025 and 2026, including delivering Audi models based on its Premium Platform Electric architecture and launching prototypes based on the CMP platform. Additionally, Volkswagen's first extended-range model will debut at the upcoming Auto Shanghai and launch in 2026.

The German automaker is also expanding its technical cooperation in China. Volkswagen's Chinese arm, software unit Cariad China, and auto startup Xpeng are developing the China Electrical Architecture, which will be implemented in ID-branded models, including those based on the Modular Electric Drive platform, by next year.

Meanwhile, Carizon, Volkswagen's joint venture with Horizon Robotics, will provide L2+ or L2++ intelligent driving technologies for CMP-based models. Audi-branded PPE platform models will incorporate Huawei Technologies' software and the Audi Q6L E-Tron, an all-electric sport utility vehicle, will feature a high-performance driver assistance system.

Looking ahead, Volkswagen will continue upgrading its combustion engine cars to hybrid and smart vehicles while enhancing product competitiveness across its range of gas-powered cars, pure EVs, plug-in hybrids, and range-extended EVs, Brandstätter concluded.

Editor: Emmi Laine