Volkswagen is implementing an “in China, for China” strategy to drive profitable growth in the country. This approach involves developing hybrid and fully electric vehicles, collectively known as new energy vehicles. The CEO of Volkswagen Group, Oliver Blume, emphasized the significance of China as their second home market and highlighted the company’s commitment to systematically advancing its strategy in the country. Blume further noted that the company is aligning its focus with the expectations of Chinese customers and prioritizing accelerated time-to-market for its products.
Additionally, Volkswagen is actively pursuing pioneering technologies, increasing cost efficiency, and strengthening local partnerships as part of its strategy in China. To achieve its goals, Volkswagen plans to achieve significant cost reductions by 40% through its locally-developed China Main Platform (CMP), also known as the A Main Platform. Ralf Brandstätter, a board member of VW AG, pointed out that Chinese car buyers, particularly the younger demographic, are tech-savvy and seek immersive digital experiences in their vehicles. This insight underscores the company’s recognition of the evolving preferences of the Chinese market and its commitment to meeting these demands with innovative and efficient solutions.