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Volkswagen Anhui, the electric vehicle joint venture between Germany’s automotive giant and a Chinese automaker, is contemplating the production of extended-range models to meet increasing market demand, according to the head of the sales and services division within the joint venture.
Initially, the plan was solely to manufacture pure electric vehicles; however, as market dynamics evolve, adjustments are necessary. The company recognizes the significant demand for extended-range electric vehicles and is adapting its strategy accordingly, said Stefan Timmermann, CEO of Volkswagen Anhui’s Digital Sales and Services.
Timmermann mentioned that the pace of introducing new EV models and the level of price competition in China’s market have surpassed expectations. To stay competitive, Volkswagen Anhui is working on improving financial efficiency and speeding up the development of new models across the board.
The company has been working to shorten its research and development cycle, reducing it from about four years to less than three. While it might not be able to match Chinese competitors in speed, Volkswagen prioritizes safety, quality, and reliability. The company plans to continue rigorous testing of chassis, batteries, and crashworthiness for all new models.
Volkswagen Anhui is the third joint venture for Volkswagen in China, after partnerships with FAW Group and SAIC Motor. Its branding features a gold emblem, giving rise to the nickname “Golden-Emblem Volkswagen,” and currently, only one model, the Yuzhong 06, is available.
In the upcoming year, several new models are expected to be launched, including the Yuzhong 07 intelligent pure electric sedan, the Yuzhong 08 full-size electric SUV, a new B-segment electric sedan, and an updated version of the Yuzhong 06. These new vehicles will utilize the China Electrical Architecture, developed collaboratively by Volkswagen and Chinese electric vehicle startup XPeng.
Volkswagen Anhui operates approximately 120 retail stores and aims to expand to 200 by year’s end, targeting mainly third- and fourth-tier cities across China.
Expanding its presence in more cities is a key reason behind Volkswagen Anhui’s growth strategy. However, the company is cautious about overextending, unlike some automakers that rapidly expanded their sales channels only to close them later. Timmermann emphasizes that profitability at retail outlets will improve as more models are introduced and sales increase.
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