Volkswagen plans to launch a brand new entry-level EV platform in China to maintain tempo with Tesla and BYD. The automaker will introduce EVs beginning at round $20,000 (140,000 yuan) to win again patrons in its most essential market.
Competitors on the earth’s largest EV market is intensifying as value cuts from market leaders like Tesla and BYD are pressuring different automakers.
The Chinese language market could be very “price-sensitive,” VW China boss Ralf Brandstaetter advised reporters Friday, in keeping with Automotive Information Europe.
Throughout a go to to its new EV facility in Hefei, Brandstaetter stated the brand new entry-level platform will cater to native Chinese language patrons regarding the battery, electrical drive, and motor. Maybe, extra importantly, Chinese language patrons are youthful and on the lookout for the newest tech and software program.
Based mostly on VW’s MEB structure, used for its present lineup of EVs, the brand new platform will use native suppliers to chop prices.
Brandstaetter added the brand new platform, slated for 2026, will enhance growth instances by a 3rd.
With plans to introduce ten new EVs globally by 2026, Volkswagen needs to speed up growth time to maintain tempo with Chinese language automakers. It goals to launch new fashions in round 2.5 years, in comparison with its present four-year cycle.
The corporate is already having some success with decreasing prices already. Ludger Luehrmann, CTO of Hefei (Volkswagen Group China Tech Firm), which is growing the platform, stated the corporate can decrease the worth of the dashboard show by 37% after switching suppliers.
Volkswagen to introduce $20,000 EVs in China
Legacy manufacturers (like VW and Audi) which have lengthy dominated the market at the moment are being swapped for home manufacturers with extra fashionable tech. And plenty of instances, these EVs come at a lower cost.
VW misplaced its long-standing title of bestselling model in China to BYD earlier this 12 months as patrons search for the newest EVs.
China is VW’s most essential market, accounting for practically half of its earnings. Its top-selling electrical mannequin, the ID.3, ranked twenty second amongst Chinese language EVs this 12 months. And that’s after slashing costs by 16% to round $17,500 (125,800 yuan) in August.
The decrease costs helped increase demand, with ID.3 gross sales reaching 10,000 in July in comparison with a median of round 2,200.
The automaker will use this technique with its new structure, referred to as A Foremost Platform. Volkswagen plans to launch 4 new EVs priced from round $20,000 (140,000 yuan) to $23,800 (170,000 yuan).
The brand new VW fashions shall be constructed by its joint ventures with SAIC and FAW, Brandstaetter stated. The corporate invested round $1.1B (1B Euros) to determine VCTC, which shall be key in regaining market share.
The power makes use of native suppliers and includes VW’s three way partnership companions to speed up growth instances. VW China’s boss defined this may minimize out “time-consuming coordination throughout time zones with builders in Germany.”
He added this may allow VW to “shorten the time it takes to deliver merchandise to Chinese language prospects by 30%.”
The automaker opened ID.7 Vizzion orders in China this week, beginning at $33,000. The Vizzion is FAW-VW’s model of the flagship electrical sedan constructed for China.
Volkswagen additionally started producing batteries at its Hefei manufacturing unit. The plant would be the first to fabricate cell-to-pack (C2P) batteries, which is able to assist enhance power density and effectivity.
Electrek’s Take
With VW’s value cuts serving to to spice up demand in China, the corporate is taking notes. VW now plans to double down and introduce 4 new EVs priced round $20,000 to regain patrons in its most essential market.
VW might want to with low-cost EVs like BYD’s Dolphin, beginning at about $16,100 (116,800 yuan) and Yuan Plus electrical SUV at about $18,500 (134,000 yuan). BYD bought round 30K Dolphin fashions in Could, about 11 instances the ID.3.
BYD’s 6 millionth NEV (together with hybrids) rolled off the road Friday because the automaker aggressively expands the model.
To regain competitiveness, VW invested $700 million into Chinese language EV maker XPeng for a virtually 5% stake in July.
Though the model expects new fashions constructed with XPeng will assist gross sales, CFO Arno Antilitz defined VW might lose additional market share till they hit the market (from 2026).
