(Yicai) Oct. 30 -- Volkswagen Group China has launched VEGA, an integrated technology stack developed by the German auto giant’s Chinese engineering team, making VW the only foreign carmaker in China with a complete in-house tech matrix.

VEGA has three core components: Compact Main Platform, China Electronic Architecture, and advanced driver-assistance systems, Beijing-based Volkswagen China announced on Oct. 28. It is designed to support market-specific vehicle development and accommodate a range of powertrains, including new energy vehicles, combustion engine vehicles, and hybrids.

The deep integration of CMP and CEA will provide the technological foundation for VW's next-generation vehicles targeting Global South markets such as South America and South Africa, as its strategy evolves from "in China, for China" to "in China, and beyond.”

Wolfsburg-headquartered VW is turning China from a market where it mainly localizes products for Chinese buyers into a tech development hub whose innovations can also underpin vehicles for other markets.

"China is a key innovation engine for Volkswagen and increasingly a product and tech hub for our global markets," noted Chief Executive Oliver Blume.

VEGA also marks a big shift in product decision-making and definition authority from VW's HQ to the Chinese unit. The move aims to recapture market share in China, where its position has weakened in recent years, draw on the development capabilities and supply-chain ecosystem it has built up in China to pursue new growth opportunities in emerging markets across the Global South.

Editors: Tang Shihua, Martin Kadiev