Volkswagen and SAIC Motor Strengthen Strategic Partnership for Future Mobility in China
Volkswagen Group is actively advancing its strategy 'In China, for China'. The organisation has reaffirmed its 40-year successful partnership with SAIC Motor, securing a long-term future by extending its joint venture agreement in Shanghai until 2040. This extension provides early planning security for the dynamic phase of the Chinese automotive market beyond 2030. Volkswagen and SAIC are enhancing the transformation of their joint venture, SAIC VOLKSWAGEN, across product portfolio, production, and decarbonisation initiatives.
Ralf Brandstätter, Member of the Board of Management of Volkswagen AG for China, emphasised, "Volkswagen and SAIC are at the forefront of individual mobility in China. We have nurtured trust with over 28 million customers since forming one of the region's earliest international joint ventures. With this extension, we underscore the pivotal role of the Chinese market and our commitment to leading in the era of smart, fully connected electric vehicles."
Wang Xiaoqiu, Chairman of SAIC Motor, highlighted the ongoing trends of electrification and intelligent vehicle transformation. "SAIC Motors has pioneered these trends, being the first Chinese carmaker to surpass one million sales in the electric and international markets. We are expanding our collaboration with Volkswagen to develop cutting-edge intelligent electric vehicles, striving for industry leadership in smart technology."
The partners have now laid a robust and timely foundation for SAIC VOLKSWAGEN's growth beyond 2030, identifying three key areas to accelerate the joint venture's transformation. By 2030, SAIC VOLKSWAGEN will launch 18 new models, including eight innovative electric vehicles. Two electric cars based on the new "Compact Main Platform" (CMP) with advanced zonal electric architecture will hit the roads by 2026, marking a significant shift from traditional combustion engines to electric mobility.
Focusing on customer-centric developments, SAIC VOLKSWAGEN aims to introduce 15 models specifically designed for the Chinese market by 2030. The partners are also revamping SVW's production network to enhance productivity and cost-effectiveness, transitioning existing facilities to accommodate electric vehicle production while exploring alternative economic solutions where needed.
In addition to vehicle innovation, both partners have committed to ambitious decarbonisation targets, aiming to reduce CO2 emissions by 25% by 2030 from 2018 levels. This commitment supports Volkswagen Group’s goal of achieving carbon neutrality by 2050, positioning SAIC VOLKSWAGEN as a leader in sustainable practices in China's automotive sector.
For four decades, Volkswagen and SAIC have tailored their strategies to meet the evolving needs of Chinese customers, from introducing the Santana and the China-specific Lavida to launching the ID.3, a leading pure electric vehicle in China. The group's accelerated transformation, driven by the Hefei development and innovation centre, enhances collaboration and speeds up development cycles, aligning closely with China's market trends and growth opportunities. Over the next three years, Volkswagen and its brands will introduce 40 new models to the Chinese market, half of which will be electrified, underscoring the group's commitment to a sustainable and innovative future.