Volkswagen Group takes the offensive in China by strengthening tech capabilities and reducing costs

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Christopher Hauss
Christopher Hauss
Corporate Communications Head of Strategy & Finance Communications
Christoph Oemisch
Christoph Oemisch
Corporate Communications Spokesperson Finance and Sales
Man presenting on stage in front of a background with the text 'IT'S ALL ABOUT EXECUTION' at a Volkswagen event.
Oliver Blume, CEO Volkswagen Group, speaks at the China Capital Markets Day 2024 by the Volkswagen Group in Beijing
  • “In China, for China”: New China strategy with significantly higher value creation in China aims for stronger local market and customer orientation. Substantially increased in-house development and software capacities as well as local partnerships form the basis for new products with state-of-the-art technologies.
  • Cost parity with local competition: The Volkswagen Group is aiming for a 40 percent cost reduction with its locally developed China Main Platform (CMP). This is a key component in achieving cost parity with local competition in the price-sensitive segment for battery electric (BEV) compact vehicles.
  • Market position as a leading international manufacturer: The Volkswagen Group intends to increase its proportionate operating result to around EUR 3.0 billion by 2030, including the fully consolidated Anhui joint venture.
  • Unique position: Solid combustion (ICE) business as highly profitable basis for the flexible transformation towards intelligent connected vehicles (ICV).
  • Tapping into new profit pools: Profitable growth with China-specific product portfolio in dynamically developing market for hybrid and fully electric vehicles (NEV).
  • Volkswagen Group CEO Oliver Blume: “China is our second home market. We continue to drive our strategy forward systematically and are going on the offensive with its execution. We focus on our Chinese customers’ expectations and the accelerated time-to-market of our products. At the same time, we are pushing pioneering technologies, increasing cost efficiency, and deepening local partnerships.“

Wolfsburg / Beijing. Volkswagen launches the next phase of its transformation in China. At its China Capital Markets Day in Beijing, Volkswagen Group presented its strategy update for the Chinese market. The focus is on its target to strengthen tech capabilities and reduce costs in the strongly growing market. The Group plans to achieve cost parity with local competition in the compact car segment by 2026 and gain further momentum through a re-aligned strategy and an efficiency program that was launched already. In addition, the company underlined its commitment to its “in China, for China” strategy: It presented measures to cater even better to the needs of Chinese customers, accelerate model developments and time-to-market as well as significantly reduce costs. In addition, the aim is to better harness the innovative power of the market and increase local value creation through more in-house development capabilities and strong local partnerships. As a result, the Group aims to strengthen its position as the #1 international OEM in the Chinese market and has set ambitious targets until 2030: Approximately 4 million vehicles sold and growth in proportionate operating result to around EUR 3.0 billion, including the fully consolidated Anhui joint venture.

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