Volkswagen Group is poised to launch a new electric vehicle (EV) next year that leverages Chinese technology to compete with established domestic players like BYD and Geely in the world’s largest automotive market.
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The German carmaker, which has seen a decline in market share in mainland China since 2020 amid a rapid adoption of EVs, said on Tuesday that its coming SUV, co-developed with Chinese partner Xpeng, would be its most intelligent model to date.
The announcement follows the inclusion of the fully-electric SUV, the ID Unyx 08, in a new catalogue of EV models published by China’s Ministry of Industry and Information Technology on Monday. Models on the list are allowed to begin production.
Volkswagen said the new EV, set to be assembled in collaboration with Anhui Jianghuai Automobile Group, would enter the market in 2026. The carmaker previously said it would partner with Xpeng on the design of two EV models slated for sale in China next year.
The design of the new SUV took Volkswagen and Xpeng 30 months to complete – more than 30 per cent faster than usual, according to the German manufacturer.
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“Leveraging targeted local partnerships and robust in-house research and development capabilities, Volkswagen Group has fully integrated into China’s automotive ecosystem, enabling it to customise products that meet Chinese customers’ needs at ‘China speed’,” the company said.