Volkswagen increases pace of innovation in China for China: tech company in Hefei launches electric platform for entry-level segment in just 36 months

Dr. Christoph Ludewig
Dr. Christoph Ludewig
Head of International Communications Volkswagen Group China
  • Volkswagen China Technology Company takes on key development task: First China-specific electric platform will increase product portfolio in entry-level segment 
  • Volkswagen expands production, development and innovation hub in Hefei: high degree of localisation strengthens product focus on Chinese customers' wishes 
  • Latest technologies speed up development and production while ensuring Volkswagen's high standards of quality and safety 
  • Close integration of the development unit with joint venture companies and partners such as Gotion in battery technology also increases efficiencies 
  • Ralf Brandstätter, Volkswagen AG Board Member for China: “We are developing Hefei into the centre of our ‘in China, for China’ strategy and a strong interface between all our joint venture companies and local partners. This boosts efficiency, increases the speed of development and optimises our cost structure."

Beijing/Hefei. The Volkswagen Group is systematically strengthening its development expertise ‘in China for China’. To drive this strategy, Volkswagen is expanding its site in Hefei in eastern China into a state-of-the-art production, development, and innovation hub. At its heart is the Volkswagen China Technology Company (VCTC) – the Group's largest development centre outside Germany, with a clear focus on intelligent, fully connected vehicles. VCTC aims to reduce the time to market for vehicles and components by 30 percent through efficient development processes and the use of cutting-edge technologies. As a result, the Group will better harness the growth momentum of the Chinese market. The hub is also taking on key development tasks, including the development of a local electric platform for the entry-level segment. Derived from the Group's modular electric drive matrix (MEB), the new platform is intended to open up further market segments in China. From 2026, the platform will form the basis for additional battery-powered vehicles (BEV) specifically tailored to the wishes of Chinese customers. The development time of just 36 months is around a third shorter than the Volkswagen Group's previous timescales.

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