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Tencent News "First Line"

Author Ao Dun

Edited by Yang Hao

With the launch of the first model with a gold logo, Volkswagen, which has been in China for 40 years, has officially started its "second" localization.

On the evening of July 17, the first product of Volkswagen (Anhui) Co., Ltd. (hereinafter referred to as "Volkswagen Anhui"), ID., was launched, with a price range of RMB 209,900 to RMB 249,900.SAIC VolkswagenIt is clearly different from the ID. series models currently on sale by FAW-Volkswagen. From the appearance, its prototype is the Tavascan model of Cupra, a high-performance brand under the Volkswagen Group SEAT. The overall style continues the coupe design and completely breaks away from the "Matryoshka face" design style of the models currently on sale.

In terms of configuration, the main selling point of ID. is intelligence, and Volkswagen even shouted out the slogan of "all standard configuration" for the first time. According to official information, the smart cockpit of ID. fully adopts the UNYX.OS operating system and the new human-machine interface (HMI), and comes standard with the new IQ. Drive full-journey intelligent driving system, covering all scenarios of daily travel.

Meng Xia, CEO of Volkswagen Passenger Cars Brand China, said that smart connected models such as ID. will attract more young users who pursue a new lifestyle. However, when talking about sales, Meng Xia said that ID. is just the beginning, and the product value is higher than sales. Volkswagen Anhui will introduce a new product portfolio in 2026.

Yang Fang, CEO of Volkswagen (Anhui) Digital Sales Service Co., Ltd., stated at a media communication meeting on the 17th that in terms of channels, ID. will adopt a hybrid sales model of direct sales and agency, which is completely independent of Volkswagen South and North.

According to the plan, four ID. Yuzhong direct experience centers will be opened across the country by the end of 2024, and the retail network will cover more than 20 cities. By the end of 2025, it will cover more than 70 cities.

For the Volkswagen Group, ID. is not just a new model, it is also a new product category launched by Volkswagen specifically for the Chinese market. It shoulders the mission of promoting Volkswagen's electrification transformation and increasing sales in the Chinese market.

Volkswagen Group has been preparing for this "opening" for seven years. As early as 2017, Volkswagen Group and AnhuiJAC MotorsGroup Co., Ltd. (hereinafter referred to as "JAC”) A joint venture company, JAC Volkswagen Automotive Co., Ltd., was established with a 50:50 ratio. In December 2020, Volkswagen Group increased its stake in the joint venture to 75%, thus achieving a controlling stake in the joint venture. Since then, the company has been officially renamed Volkswagen (Anhui) Co., Ltd.

According to the plan, Volkswagen Anhui is expected to produce 200,000 to 250,000 vehicles by 2025, and 350,000 to 400,000 vehicles by 2029. The total revenue is expected to reach 30 billion yuan by 2025 and 50 billion yuan by 2029.

In the following four years, Volkswagen Group, with Volkswagen Anhui as its center, has fully deployed the entire industrial chain ecosystem including R&D testing, supply chain, and sales in Hefei, and successively established Volkswagen (Anhui) Digital Sales Service Co., Ltd., Volkswagen (China) Technology Co., Ltd. (hereinafter referred to as "VCTC"), Volkswagen (Anhui) Parts Co., Ltd. and other wholly-owned subsidiaries.

Unlike Volkswagen South and Volkswagen South, Volkswagen Anhui focuses only on new energy vehicles. Its core goal is to cope with competition in the Chinese market in the most efficient and cost-effective way and to ensure Volkswagen's basic base in China.

In April this year, Volkswagen Group announced that it would invest 2.5 billion euros to further expand its production and innovation center in Hefei, strengthen local R&D capabilities, and accelerate the group's cooperation withXpeng MotorsProduction of two jointly developed smart electric models for the Volkswagen brand.

According to the plan, by 2030, Volkswagen's pure electric ID. family products will be expanded to 16 models, including 5 smart pure electric ID.UX category models by 2027, including models jointly developed by Volkswagen and Xiaopeng, two of which are B-class cars.

Meng Xia revealed that Volkswagen and Xiaopeng Motors signed a relevant cooperation agreement on July 16, and the specific content of the cooperation will be disclosed to the public in the near future.

Earlier, when talking about the roles played by Volkswagen Anhui, SAIC Volkswagen and FAW-Volkswagen in the Volkswagen brand business, Meng Xia said that although the three joint venture partners have different roles, Volkswagen hopes that they will undertake more R&D work in China and accelerate the R&D process. "At the same time, we will optimize the cooperation model, reduce costs, and speed up the time to market for new products by 30%."