In a strategic move to fortify its standing in the rapidly evolving Chinese electric vehicle (EV) market, Volkswagen has unveiled plans for a groundbreaking platform tailored for affordable electric cars. This significant development was disclosed by Ralf Brandstaetter, China Chief of Volkswagen.
The announcement was made during the inauguration of the Volkswagen Group China Technology Company (VCTC) in Hefei. The newly established VCTC, backed by an investment of approximately $1.1 billion, is projected to generate over 2,000 job opportunities.
At the heart of Volkswagen’s strategy is the creation of a new entry-level platform specifically designed for the Chinese market, currently dubbed the “A Main Platform.”
The primary objective is to streamline costs, with a particular emphasis on maximizing the use of locally sourced components. The new product strategy will mark a departure from the current production MEB-based models in China, such as the ID.3, ID.4, ID.6, and ID.7.
According to Volkswagen, the newly-developed cost-effective platform will result in the introduction of four EVs starting in 2026. The new platform will be based on the brand’s popular (MEB) Modular Electric Drive matrix.
Chinese EV Market
Ralf Brandstaetter highlighted that the Chinese electric vehicle market is very “price-sensitive.” To tackle this, Volkswagen aims to cut costs. The brand lost its top-selling position in China in 2022, mostly due to a drop in gasoline car sales.
Lowering the price of the Volkswagen ID.3 model in China already led to a significant increase in sales, jumping from 2,200 units per month to around 10,000 per month between July and October.
New Model Pricing & Production
The upcoming platform is specifically designed for the entry-level market, with an attractive price range of $19,570 (AED 72,000) to $23,760 (AED 87,000). This could make electric cars more appealing to Chinese consumers.
Volkswagen plans to introduce four models based on the new platform, produced through existing joint ventures with SAIC and FAW. Additionally, starting in 2026, they aim to launch two more electric models in partnership with XPeng, bringing the total to six new models.
By 2026, Volkswagen plans to launch a total of 10 new electric cars worldwide, signalling a commitment to a faster pace in bringing innovative vehicles to market.
New Budget VW EVs In The UAE
Currently, the ID.6, produced exclusively in China, is being exported to the UAE and has become one of the popular choices for EVs in the country. The ID.6 was also featured in our weekly car spotlight series showcasing the car’s history to date. A similar situation is expected when Volkswagen introduces these new affordable EVs in China, which will likely be exported to the UAE.