Volkswagen (ETR:VOWG_p) (VW) announced Friday its plans to create a new platform for affordable electric vehicles in China.
The company aims to incorporate more locally sourced components to reduce expenses while targeting a resurgence in the world's largest automotive market.
Ralf Brandstaetter, Volkswagen's China chief, highlighted that the upcoming A Main Platform will be tailored to meet the preferences of Chinese consumers, particularly in aspects such as battery technology, electric propulsion, and motor design.
Brandstaetter shared this information with reporters during his visit to Volkswagen's recently established EV development and procurement center in Hefei, a central city in China.
Chinese new car buyers are younger, tech savvy and like an immersive digital experience from their cars, he added.
Based on the modular electric drive matrix (MEB), Volkswagen's current electric-only platform established in 2019, the new platform will heavily rely on Chinese suppliers and is anticipated to be market-ready by 2026. This timeline marks a significant improvement, being a third quicker than previous platform development durations.
Volkswagen has outlined its intention to launch an additional 10 electric vehicle models worldwide by 2026. To achieve this goal, the company aims to accelerate its new model launch timeframe from four years to the 2.5-year average for its Chinese counterparts.
Brandstaetter emphasized that China represents a highly “price-sensitive” market, requiring Volkswagen to prioritize cost optimization strategies.
“When (EV) volume goes up, … it’s important that we are profitable to be sustainable. Therefore we drive the technologies, the speed and cost efficiency."
VW plans to develop four models on the new platform. Priced between 140,000 yuan ($19,400) and 170,000 yuan, the new models will compete with rivals in a segment currently dominated by gasoline cars.
According to Brandstaetter, the vehicles would be produced by VW's joint ventures with SAIC and FAW.