In early April, Volkswagen unveiled three all-new models – Zhongyu 08, ID.ERA 9X and ID.AURA T6 – at its brand night event, marking the completion of the first phase of its largest-ever electrification offensive in China. Its In China, For China strategy has officially entered the delivery stage.
To demonstrate firm commitment to China’s EV market, Thomas Schäfer, CEO of Volkswagen Passenger Cars, repeatedly pledged an “All In” stance and full dedication to the local market.
According to Volkswagen’s roadmap, it will launch 13 new energy vehicles in China by 2026, covering pure electric, PHEV and range-extender powertrains. New energy models will account for over half its lineup by 2027, and exceed 30 all-new NEVs by 2029.
Is Volkswagen’s new EV transformation up to standard? Can it preserve its core automotive DNA in the intelligent electric era? Will it remain a major player in the next automotive age?
Ahead of the brand night, Schäfer and Dr. Robert Cisek, CEO of Volkswagen Passenger Cars China, held in-depth talks with leading automotive media including Autohome. Their remarks hold the answers to these questions.
Delivering results tailored for the Chinese market
Volkswagen remains the most successful joint venture automotive brand in China.As of April 2026, it has accumulated over 47 million Chinese customers, ranking No.1 among all automotive brands nationwide.
Yet its annual China sales fell below 2 million units in 2025, down more than 35% from over 3 million units just six years prior.The sole major cause: slow adaptation to vehicle electrification.
Amid the EV revolution, Chinese brands quickly dominated the domestic market thanks to complete intelligent & EV industrial chains and rapid iteration speed.China’s automotive rise dethroned Volkswagen, which had held China’s top sales spot for decades.
After reflecting deeply, Volkswagen chose to strike back by partnering with leading Chinese local enterprises.
“Volkswagen is a global brand, yet we attach immense importance to regional demands, especially China,” said Schäfer.“We also grant Chinese teams full autonomy and decision-making power to play a far greater role.”
With greater authority for local teams, Volkswagen gained far more flexibility in powertrain development.It continues advancing BEV and PHEV technologies while expanding into range-extended EVs, some boasting combined range exceeding 1,600 km.Local vehicle design language has also become distinctly Chinese-styled.
To stay at the forefront of intelligent EV technology, Volkswagen China Technology Company (VCTC) employs more than 3,000 engineers.The brand also integrates strengths from Chinese smart EV partners to complement its own global advantages.
Volkswagen continues upgrading fuel-powered models alongside its EV push.Dr. Cisek revealed that the CEA electrical and electronic architecture co-developed with XPeng will also be adopted for ICE vehicles.This lays a solid technical foundation for Volkswagen’s long-term China business and accelerates its transition to intelligent connected and new energy mobility.
In sales channels, the Zhongyu 08 will be sold through FAW-Volkswagen networks.Cisek stated that more ID and Zhongyu models will follow, leveraging decades of mature JV dealership networks to rapidly scale new product launches.
Across team structure, technology, design and sales channels, Volkswagen will become increasingly localized and China-centric.
Does the brand’s soul remain intact?
Beyond accelerating Chinese electrification, Volkswagen will launch 9 new pure EVs in Europe by late 2027, and 11 new EV models in South America by late 2028.
Schäfer noted Volkswagen aims to popularize high-end technologies across all market segments.He emphasized that Volkswagen’s global brand DNA remains unchanged: safety, quality and reliability.
Dr. Cisek added that Volkswagen combines German automotive craftsmanship – especially its DNA of safety, durability and premium build quality – with China’s dynamic tech innovation ecosystem.
This is far more than a simple mix of German quality and Chinese features.Volkswagen rejects the narrative that partnering for intelligent EV technology means losing its soul.Superior vehicles require collaboration with top specialists across different fields.
Schäfer stressed that true value lies in practical technology implementation and real user experience.With over 40 years of deep roots in China and even longer global heritage, Volkswagen excels at integrating complex technologies into refined driving experiences.
Dr. Cisek compared brand-partner cooperation to cooking:Volkswagen relies on cutting-edge technologies from XPeng, Horizon Robotics, CATL and other partners to build great cars.But great vehicles depend not just on parts stacking, but outstanding system integration and professional chassis tuning.Every high-quality ingredient matters, but not every chef delivers the same standard dish.
Volkswagen refined vehicle system smoothness, driving comfort and ease of use extensively.New models adopt advanced Chinese tech stacks, paired with German engineering precision and chassis tuning expertise.
Unlike some Chinese brands that pile on flashy functions, Volkswagen only delivers practical, valuable features optimized for real user benefits.
For nearly a century, Volkswagen has accumulated usage data from tens of millions of global customers.While early products may not be perfect, continuous real-road data allows steady optimization and ongoing OTA iteration.
Staying active in the competitive game
In 2025, China’s auto production and sales hit a record 34.4 million units, with NEV output and sales surpassing 16 million, accounting for nearly half the market.Meanwhile, China’s automotive industry profit margin dropped to a historic low of 4.1%, falling to just 1.8% in a single month by year-end.
Against fast-changing, cutthroat market competition, Schäfer said all global carmakers must face the challenge of gaining a firm foothold in China.
Some international giants rely on healthy overseas profits, choosing to wait until China’s fierce competition cools down before re-entering.Volkswagen firmly rejects this passive strategy.
Describing market competition as dancing on a stage, Cisek said:“If you leave the dance floor and wait for a better song to return, you will no longer keep up the rhythm.”
In this fast-paced industry, exiting the market means losing competitive advantages that are nearly impossible to regain.Volkswagen’s strategy: keep dancing, never step aside.
Yet staying competitive is far from easy.Many legacy advantages of global brands from the ICE era have become burdens in the intelligent EV age.
Schäfer acknowledged that brand reputation alone cannot sustain long-term competitiveness.Volkswagen must deliver tangible strengths: cutting-edge tech, practical features and strict cost control, supported by massive internal restructuring and upgrades.
“In China, For China is our core foundation. Localization is the only path to long-term competitiveness here,” Schäfer stated.Volkswagen will roll out a full lineup of tailored models, absorbing China’s software and hardware innovations to maintain market strength.
German and Chinese teams continue mutual learning.German teams gain inspiration from China’s speed and efficiency, while Chinese teams benefit from Volkswagen’s decades-long supply chain and technical heritage.This cross-border knowledge sharing will keep growing, making a far more China-focused Volkswagen a key player in China’s EV era.
Conclusion
Since 2025, the industry has seen huge potential from joint venture brands partnering with Chinese EV and intelligence leaders.Now Volkswagen, long China’s top foreign automotive brand, will launch dozens of distinctly Chinese-styled vehicles.China’s smart EV market is set to become even more exciting.
How will the more electrified, intelligent and localized Volkswagen perform amid fierce domestic competition?We begin with Zhongyu 08, ID.ERA 9X and ID.AURA T6 in 2026.