AutoBeta(AutoBeta.net)09/28 Report--

Volkswagen, as the largest brand in the domestic automobile market, has two joint ventures that sweep the top two seats every year. Even if SAIC-Volkswagen, which has the best performance in the past, has declined, it has also been topped by FAW-Volkswagen, another joint venture brand under the brand. The two joint ventures already account for more than 20% of the Chinese market. In order to ensure its market advantage, Volkswagen has planned to inject electric models to ensure its advantage.

On Sept. 28, Volkswagen Group (China) announced that it would work with joint venture partners SAIC Volkswagen, FAW-Volkswagen and Jianghuai Volkswagen to invest about 15 billion euros between 2020 and 2024 to accelerate the distribution of electric travel in China. It plans to localize the production of 15 new energy models by 2025, increasing the proportion of electric models in the group's product portfolio to 35%.

It is understood that Volkswagen Group has previously announced an investment of 33 billion euros in the field of global electric travel, but this 15 billion euros is another fund specifically used by Volkswagen to invest in the Chinese market, which means that Volkswagen Group attaches great importance to the improvement of its energy market in the Chinese New year, so as to maintain its advantage in China.

In Volkswagen's view, new energy vehicles must be the trend of the future, and the Chinese market, as the largest single market in China, is also the largest new energy vehicle market. According to the China Automobile Association, domestic production and sales of new energy vehicles reached 1.242 million and 1.206 million respectively in 2019, down 2.3 per cent and 4.0 per cent respectively from the same period last year. However, the Volkswagen electric vehicle field is only less than 50,000, accounting for far less than the proportion of brands in the domestic passenger car market.

It is well known that Volkswagen Group's main sales come from the Chinese market. In 2019, Volkswagen Group's overall sales reached 4.2336 million vehicles, accounting for 38.6% of Volkswagen Group's global sales, nearly 40%. The layout of the Chinese market is dominant to Volkswagen, and Volkswagen CEO Dis once said, "the Chinese market is of the most important significance to the future of Volkswagen Group, and it can even be said that the future of Volkswagen Group will be determined by the Chinese market." Now that the market is gradually changing to electrification, Volkswagen has to make timely adjustments.

Through huge investment and product planning, Volkswagen Group even expects to launch 75 pure electric models around the world, most of which will be launched in the Chinese market, with global sales of 26 million electric vehicles.

With the delivery of Volkswagen's first all-electric model, the ID3, Volkswagen has planned to deliver new cars to Chinese customers at the FAW-Volkswagen Foshan plant and SAIC-Volkswagen Anting plant early next year. Volkswagen brand ID. Series electric vehicles will become the key for the group to achieve electric travel goals, ID. The ID.4 series of SUV models has recently completed its global debut and may become the first domestic model to be listed in the domestic market in the future.

In addition, in May this year, Volkswagen increased its stake in Jianghuai Volkswagen to 75% and acquired a 50% stake in JAC Holdings, which it plans to further integrate into China's development.

From this point of view, Volkswagen attaches great importance to the domestic new energy market. with the completion and commissioning of Volkswagen's new energy plant, it is a historic moment not only for SAIC Volkswagen but also for Volkswagen Group, but also reflects that Volkswagen's electric layout has entered a new stage. the first domestic pure electric model is also coming.

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