China has already become our second home. Volkswagen, with a strategy of ‘In China, For China,’ is deeply engaged in cultivating the new quality productive forces and contributing to China’s development,” Chairman and CEO of Volkswagen Group China Ralf Brandstätter said in an interview with Xinhua.
Brandstätter noted that China’s new energy vehicle (NEV) industry is leading the global market and exemplifying new quality productive forces thanks to its vigorous focus on — and its advancements in — technological innovation.
To utilize the innovation power and dynamic growth of the Chinese market in an improved manner, Volkswagen Group has been establishing a state-of-the-art development, innovation and procurement centre in Hefei, east China’s Anhui Province.
Volkswagen China Technology Company (VCTC) in Hefei is Volkswagen Group’s largest development centre outside of Germany. The company has been fully operational since January and is set to reduce the time it takes to develop new products and technologies by about 30 per cent.
“In no other country is the dynamic of transformation and innovation in the automotive sector as pronounced as it is in China,” Brandstätter said.
In 2023, China’s production and sales volumes for new energy vehicles both surpassed 9 million units, securing the country’s position as the global leader in the sector for a ninth consecutive year.
According to data from the China Association of Automobile Manufacturers, China’s production and sales of new energy vehicles reached 1.252 million and 1.207 million units, respectively, from January to February last year. These figures represent respective year-on-year increases of 28.2 percent and 29.4 percent, indicating the industry’s robust and sustained growth.
Brandstätter projects that by 2025, the NEV market share in China will exceed 50 percent. By 2030, the total automotive market is expected to expand to between 28 million and 30 million vehicles, with NEVs constituting approximately 74 percent of that figure, and with more than 55 percent of those NEVs being fully electric vehicles.
“With our ‘In China, For China’ strategy, we are fully integrating ourselves into China’s industrial ecosystem. This enables us to customize our products even faster to meet the needs of Chinese customers,” Brandstätter said. “Our goal is to remain the number-one international original equipment manufacturer (OEM) in China and be a leader in the era of intelligent connected vehicles.”
In 2023, Volkswagen Group China saw strong growth in its sales of pure electric vehicles, with total deliveries surpassing 190,000 units, a 23 percent rise from the previous year. Looking ahead, Volkswagen Group is set to launch over 40 new models in China over the next three years, with at least half of these being NEVs.
“We have also established collaboration with more local partners, acknowledging that technology trends and customer preferences in China are significantly different from those in other markets,” Brandstätter said.
He noted that since Volkswagen’s entry into the Chinese market in 1984, the company has been actively engaging in and contributing to the evolution of China’s automotive industry. Over recent decades, the industry has hit remarkable milestones and is currently transitioning to a new phase of development.
“Drawing upon our strong foundation of four decades of close collaboration, Volkswagen is dedicated to working together with the Chinese automotive industry to forge a new era of individual mobility,” he said.
