VWAPY Volkswagen AG (PK)

By David Sachs

Volkswagen Group will launch an electric-vehicle production platform in China aimed at local consumers as part of its strategy to regain its footing in the crucial country.

The German carmaker said Friday that it will launch the new architecture in 2026 and that it will support EVs in the entry-level segment. The platform, developed in Hefei, Anhui Province, is part of Volkswagen's previously announced strategy to use more local parts at lower costs to speed up production and build electric cars that cater to Chinese buyers.

"The Volkswagen China Technology Company in Hefei is the central interface between all our joint venture companies and our Chinese partners, allowing us to make all decisions on products for China directly in China and launch them onto the market quickly," said Ralf Brandstaetter, head of Volkswagen's China division. "This boosts efficiency, increases the speed of development, and optimizes our cost structure."

China is the largest car market in the world, but Volkswagen last year lost its distinction as the country's best-selling brand to China's BYD, which has capitalized on the rapidly growing appetite for EVs the country.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

November 24, 2023 03:09 ET (08:09 GMT)

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