Volkswagen has announced plans to fully implement its For China, In China strategy by launching more than 30 new models tailored to the Chinese market over the next three years. Starting in 2026, over 20 of those new releases will be new energy vehicles (NEVs), including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and extended-range electric vehicles (EREVs).
Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand, emphasized at Auto Shanghai 2025 that the strategy first introduced in 2023 has undergone significant development over the past two years and is now entering full execution. He noted that more than 3,000 experts are working at the Volkswagen Group China R&D Center, focusing exclusively on innovation for the Chinese market.
At this year’s Shanghai Motor Show, Volkswagen unveiled next-generation EV models such as the ID. AUR, ID. ERA, and ID. EVO, showcasing its vision for the electrified era. Stefan Mecha, CEO of Volkswagen Passenger Cars in China, called the launch a key moment that reflects Volkswagen’s deep commitment to adapting to the rapid changes in the Chinese market.
To respond to China’s rapid electrification and smart mobility trends, Volkswagen is strengthening its partnerships with local technology leaders. In particular, the company is enhancing its product competitiveness in smart driving systems and user experience (UX) by collaborating with Chinese tech firms such as Horizon Robotics.
Schäfer stated that China is not only Volkswagen’s largest single market but also a hub for electrification and digital innovation. He affirmed that the company will continue expanding investments in localized products and technologies by working closely with Chinese partners.
In recent years, global automakers have faced growing challenges in China due to the rapid rise of domestic EV brands and accelerated technological innovation. Local players such as BYD, XPeng, and NIO have been expanding swiftly with competitive pricing, advanced technologies, and localized services, increasingly threatening the market share of traditional global brands.
In response, Volkswagen is shifting away from its conventional approach of importing global models into China. Instead, it is now focused on developing and manufacturing vehicles specifically optimized for Chinese consumers. New models like the ID. AUR, ID. ERA, and ID. EVO are all led by local R&D teams, with design, driving performance, and smart features thoroughly tailored to Chinese market demands.
This move mirrors similar strategies announced by Toyota and BMW, who are also ramping up local innovation and forming joint development efforts with Chinese AI startups. The collective pivot by global brands to enhance domestic R&D and partner with local firms underscores China’s transformation from an export destination to a central stage for automotive innovation.
The next three to five years will serve as a pivotal moment for global automakers to not only survive but also grow in China. Whether Volkswagen can regain market share and maintain relevance amid the fast-evolving Chinese EV landscape will be closely watched.
