Gasgoo Munich- on April 11 that Han Sanchu, Executive Vice President of Volkswagen Group China and CEO of CARIAD China, outlined the group's strategic progress at the Intelligent Electric Vehicle Development Forum 2026. He revealed that the group's first localized regional electrical and electronic (E/E) architecture, CEA 1.0, entered mass production as scheduled by the end of 2025. This milestone signals that Volkswagen has completed full-cycle capability building in China, spanning from product definition to technical development. The group has formally entered the software-defined vehicle era.
Data indicates that by 2025, the penetration rate of new energy vehicles (NEVs) in China surpassed 50%, with annual sales approaching 13 million—far outstripping Europe's roughly 30%. Characterized by extreme complexity and rapid iteration, the Chinese market is now dictating the pace of global NEV competition. In response, Volkswagen Group established its "In China, For China" strategy three years ago, aiming to build a complete local R&D ecosystem that can respond swiftly to Chinese consumer demands.
Image source: China EV100 Research Institute
Han Sanchu also reviewed the three phases of Volkswagen's development in China. Since 2024, the group has officially entered its third phase, centered on full-process local R&D. Key milestones include the establishment of Volkswagen Group China Technology Company (VCTC)—the group's first center outside German headquarters with complete vehicle development capabilities—and the formation of CARIAD China. The CARIAD China team now exceeds 1,000 members and, through joint ventures with partners like Horizon Robotics and ThunderSoft, has built a full-stack technology matrix spanning intelligent driving, smart cockpits, and interaction design.
Technologically, Volkswagen has pinpointed the CEA E/E architecture as the pivot for its transformation. Bridging gaps in the previous development system, this architecture achieves deep decoupling of software and hardware and now supports multi-powertrain platforms, including internal combustion, pure electric, plug-in hybrid, and range-extended models. Notably, the CEA 1.0 architecture—built from scratch in 18 months—successfully entered mass production at the end of 2025 on new models based on the MEB platform.
Paired with the L2+ intelligent driving solution delivered by CARIZON, the group's joint venture with Horizon Robotics, Volkswagen has made significant progress in independent software development capabilities and local technical competitiveness in China.
According to the roadmap, Volkswagen's R&D and product rollout in China are accelerating significantly. The year 2026 will be pivotal for translating these capabilities into a product offensive, with group brands set to launch more than 20 NEV models in the Chinese market.
Over the next five years, the group plans to introduce approximately 30 NEV models by 2027, rising to 50 by 2030. Concurrently, CARIZON is advancing the deployment of L2++ intelligent driving solutions and has initiated R&D on smart driving SoC chips to secure core computing power for high-level autonomous driving.
Han Sanchu noted that leveraging VCTC—a full-process testing center with a team of over 3,000 and 100,000 square meters of R&D space—the group has accelerated its development cycle by 30% with a potential cost optimization of 50%. Moving forward, Volkswagen will balance "China Speed" with "Volkswagen DNA," upholding safety and quality standards amid rapid iteration to unlock long-term value in the Chinese market.
