About Volkswagen Group China
The Volkswagen Group is one of the first and most successful international car manufacturer in China’s automobile industry and we have made individual mobility possible together with its Chinese Partners. For over 40 years, the Volkswagen Group and its brands have always been pioneers of mobility in China.
Volkswagen Group China’s business scope includes the production, sales and services of vehicles and parts, such as engines and transmissions. The Group is represented by a diverse array of brands across all segments, including Volkswagen, Audi, ŠKODA, JETTA, Porsche, Bentley, Lamborghini, Ducati, MAN, SCANIA.
The company’s success story in China began in 1978, when Chinese partners first made contact with the Volkswagen Group. In 1984, SAIC Volkswagen Corporation Ltd., Volkswagen Group’s first joint venture in China, was founded in Shanghai, followed by FAW-Volkswagen Corporation Ltd. in 1991. In 2017, in addition to the two existing joint ventures in China, the Group launched the joint venture Volkswagen (Anhui) Automotive Company Limited with the aim of producing NEVs (New Energy Vehicles). In 2021, the Audi FAW NEV Company was incorporated, focusing on the manufacture of premium NEVs in China.
Since entering the Chinese market, the Volkswagen Group has secured a leading market position. Together with its joint venture partners, it delivered 2.93 million vehicles in Chinese Mainland and Hong Kong in 2024. To date, about 50 million customers in China are driving cars from the Group brands – a customer base that is unparalleled by any other domestic or international automaker in the country. The Volkswagen Group is continuing to build on this strong market position.
As the automotive industry rapidly shifts towards the era of Intelligent Connected Vehicles (ICV) and autonomous driving, the Group is following a strong strategic plan to maintain its leading position in this attractive growth market. Therefore, Volkswagen Group is consistently powering forward its “Target picture 2030” and the consistent “In China for China” approach to
- achieve high technical localisation to leverage the market's innovative dynamics,
- reduce development time for products and technologies by 30 percent,
- optimize costs through local supply chains, and
- strengthen customer orientation.
To further enhance local development expertise in China, the Volkswagen Group has set up the innovation hub “Volkswagen Group China Technology Company (VCTC)” in Hefei and is expanding local partnerships to capitalize on the innovative strength of the market.
Established in 2023, VCTC is the biggest R&D center of the group outside Germany and the only one focused exclusively on the development of ICVs. VCTC enables the Group to fully integrate itself into China's industrial ecosystem and to customize products even faster to meet the needs of Chinese customers. One of the key tasks of VCTC is to develop the Compact Main Platform (CMP), the Group’s first vehicle platform developed in China. Through efficient R&D processes and deep integration into the local ecosystem, the development of the CMP platform will be shortened by 30%, while costs will be reduced by approximately 40%.
With its e-models on the CMP, Volkswagen Group China is targeting the price-sensitive compact segment, which is expected to account for about half of the rapidly developing e-market in China by 2030.
Volkswagen Group China has a clear product roadmap designed to capitalize on market growth across various segments and align the model portfolio accordingly. The Group brands will offer more than 30 BEVs by 2030. In addition, Volkswagen is hybridizing and digitizing its iconic ICE models, transforming them into a smart NEV fleet. Beyond that, the portfolio will be expanded to include range extender variants.
At the same time, the Volkswagen Group is driving forward the digitalisation of its model portfolio ‘in China, for China’. Starting in 2026, the ‘China Electronic Architecture’ (CEA) – a powerful zonal architecture, will be used in the locally produced fully electric vehicles of the Volkswagen brand. This reduces complexity, enhances cost efficiency and accelerates the digital expansion of the model portfolio in China – a cornerstone to maintain a leading role in the ICV era. To accelerate the integration of intelligent technologies into the cars of the Group’s brands, CARIAD China is collaborating with local high-tech companies to develop local solutions for autonomous driving, connectivity and infotainment.
Volkswagen Group China is pursuing a clear growth plan with its 'in China, for China' strategy in a market that is expected to grow from around 23 million vehicles today to approximately 28 million vehicles by 2030. In this context, Volkswagen Group China aims to remain the largest international OEM in China and continue to position itself among the top 3 OEMs in the country.
Volkswagen Group China has an extensive footprint in China. It has over 30 plants in Shanghai, Changchun, Dalian, Nanjing, Yizheng, Chengdu, Foshan, Ningbo, Changsha, Qingdao, Tianjin, and Hefei, which manufacture vehicles and components. Its MEB plants in Anting, Foshan, and Hefei, as well as the PPE plant at Audi FAW NEV Company, focus on the production of pure electric cars.
With the “In China for China” approach and the “regenerate+” sustainability strategy, Volkswagen Group China not only offers high-quality products and services to the consumers, but also powers forward its transformation in an economically-sustainable, ecologically and socially responsible approach.
Volkswagen Group China supports the groupwide targets of carbon neutrality, electric drive and circular economy. By 2030, 100 percent of the external electricity supply at all plants in China is to come from CO2-neutral sources. By 2040, all production sites in China are aiming to achieve balance sheet carbon neutrality. In doing so, Volkswagen Group China supports the company’s goal of achieving balance-sheet CO2 neutrality across all areas and throughout the entire lifecycle of its vehicles by 2050.
Having been deeply rooted in China for more than 40 years, the Group is committed to the country also pursuing a comprehensive CSR program. Over the past decade, the Group has donated around 300 million RMB to various areas including ecology, education, arts, culture and sports, and social care, contributing to the sustainable development ecology and society in China.
By continuously leveraging advanced and eco-friendly technologies and products to China, as well as providing professional services to customers, the Volkswagen Group is creating sustainable valuable for both society and the environment - today and for generations to come.
