Volkswagen Group plans to launch EV platform targeting entry-level market in China

Shanghai (Gasgoo)- Volkswagen Group announced on November 24 that Volkswagen China Technology Company ("VCTC") will launch an electric vehicle platform targeting the entry-level market within the next three years.

This new platform, a derivative of the MEB platform, focuses on entry-level battery electric vehicle (BEV) models. All the technologies and components involved will be 100% locally developed, reducing the vehicle development cycle by 30%. The platform's development cycle is only 36 months, approximately one-third shorter than previous platform development cycles of Volkswagen Group. Starting from 2026, the group plans to develop BEV models tailored to the specific demands of Chinese customers based on this platform.

VCTC Rendering; photo credit: Volkswagen Group

The first batch of four models on the China-exclusive platform will involve Volkswagen Anhui, FAW-Volkswagen, and SAIC Volkswagen, with prices ranging between 140,000 yuan and 170,000 yuan.

Ralf Brandstätter, Volkswagen AG Board Member for China, said: “With our 'in China, for China' strategy, we are fully integrating ourselves into China's industrial ecosystem. This enables us to customise our products even faster to meet the needs of Chinese customers. In a dynamic market environment, a high pace of development is crucial for competitiveness. The Volkswagen China Technology Company in Hefei is the central interface between all our joint venture companies and our Chinese partners, allowing us to make all decisions on products for China directly in China and launch them onto the market quickly. This boosts efficiency, increases the speed of development, and optimises our cost structure.”

The advanced production, R&D, and innovation center established in Hefei are vital pillars of the group's 'In China, For China' strategy. This center will help the group capture decisive trends in the Chinese market early and leverage the growth momentum and innovation capabilities of the Chinese market to drive its own development.

Another key pillar of this strategy, Volkswagen Anhui, is set to commence production in the coming weeks, as well as the VW Anhui Component Company, with its production facility for high-voltage battery systems.

Through VCTC, Volkswagen Group is bundling all development units and decision-making processes in Hefei to develop models for the Chinese market. The group said this approach streamlines communication between departments, significantly improving efficiency. All teams collaborate within the same time zone and focus specifically on the local market. Furthermore, the company integrates the development and procurement of vehicles and components in the early stages of product development, simultaneously enhancing speed, saving time, and optimizing cost structures.

Close collaboration with partners such as SAIC Volkswagen, FAW-Volkswagen, Volkswagen Anhui, Gotion (battery), and XPeng (electrification) in the R&D field will further optimize synergies, the group added. Simultaneously, partners such as Horizon Robotics (autonomous driving), ARK (user experience) and Thundersoft (infotainment) are also involved in close cooperation with CARIAD, Volkswagen's software unit.