Volkswagen announced on Friday its plan to develop a new platform for entry-level electric vehicles in China, aiming to use more local components to reduce costs. The company is on a mission to reclaim its position in the world’s largest auto market.
The new platform, known as the A Main Platform, is specifically designed to cater to the preferences of Chinese consumers when it comes to battery, electric drive, and electric motor, said Ralf Brandstaetter, the China chief, during a visit to the company’s new EV development and procurement center in Hefei.
Brandstaetter added that Chinese new car buyers are younger, tech-savvy, and seek an immersive digital experience from their vehicles. The A Main Platform is derived from the existing modular electric drive matrix (MEB) and will mainly utilize Chinese suppliers. It is expected to be ready for the market by 2026, which is one-third faster than previous platform development times. Volkswagen plans to introduce 10 more EV models globally by 2026 and is aiming to reduce the time to market for new models from four years to closer to the 2.5-year average for its Chinese counterparts.
Ludger Luehrmann, chief technology officer at the Hefei center, revealed that the company was able to lower the price of its dashboard displays by 37% after switching to a Chinese supplier from a global one. This move is part of Volkswagen’s efforts to optimize costs in a “price-sensitive” market.
Volkswagen lost its position as the best-selling car brand in China to BYD last year due to intense competition with local EV makers and its heavy reliance on gasoline vehicles, whose sales have been declining in the country. The company is now looking to expand its product range in China to attract customers in the entry- and mid-level segment of EVs, with plans to develop four models priced between 140,000 yuan ($19,400) and 170,000 yuan on the new platform to compete with rivals in a segment dominated by gasoline cars currently.
The launch of the A Main Platform is part of Volkswagen’s larger strategy for China, which includes investing around 1 billion euros ($1.1 billion) to build the Volkswagen Group China Technology Company (VCTC) and developing joint ventures with SAIC, FAW, and JAC Motors. The goal is to increase efficiency in development processes and shorten the time it takes to bring products to Chinese customers by 30%, while catering to their specific needs.
In a bid to bolster its EV lineup, Volkswagen struck a deal with Chinese EV maker Xpeng Inc in July, with plans to roll out two new models targeting mid-level consumers from 2026 as part of that partnership.
(Reporting by Zhang Yan, Brenda Goh, and Victoria Waldersee; Editing by Kim Coghill)
