Volkswagen and SAIC Extend Joint Venture to 2040, Pioneering Electric and Decarbonized Mobility in China

Volkswagen and SAIC Extend Joint Venture to 2040, Pioneering Electric and Decarbonized Mobility in China

(IN BRIEF) Volkswagen and SAIC Motor have extended their joint venture, SAIC VOLKSWAGEN, until 2040, marking 40 years of partnership. The agreement accelerates the transformation of China’s automotive industry through electrification, innovation, and sustainability under Volkswagen’s “In China, for China” strategy. By 2030, SAIC VOLKSWAGEN will launch 18 new models, including eight electric vehicles and several hybrids. The partnership also focuses on decarbonization, aiming to reduce CO2 emissions by 25% by 2030. With enhanced production capabilities and localized innovation, Volkswagen and SAIC aim to strengthen their market leadership in China’s electric and connected vehicle segments.

(PRESS RELEASE) WOLFSBURG, 27-Nov-2024 — /EuropaWire/ — The Volkswagen Group and SAIC Motor have renewed their longstanding collaboration, extending their joint venture, SAIC VOLKSWAGEN, until 2040. This milestone in the 40-year partnership underscores the companies’ commitment to transforming China’s automotive industry with a focus on electrification, innovation, and sustainability under Volkswagen’s “In China, for China” strategy.

The extended agreement supports the launch of 18 new models by 2030, including eight electric vehicles tailored to the Chinese market and three plug-in hybrid models. Two state-of-the-art electric vehicles based on the Compact Main Platform (CMP) will debut by 2026, reflecting Volkswagen’s dedication to localized innovation.

Strengthening Production and Sustainability Goals

SAIC VOLKSWAGEN will optimize its production network, shifting capacity toward electric vehicles while gradually phasing out internal combustion engine production. The joint venture also aims to reduce CO2 emissions by 25% by 2030, aligning with Volkswagen’s global carbon neutrality goals.

Leaders on the Future of Mobility

Ralf Brandstätter, Volkswagen AG’s Board Member for China, stated, “This contract extension highlights the importance of our partnership with SAIC and the Chinese market. Together, we are advancing electric mobility and leveraging local innovation to strengthen our global competitiveness.”

Wang Xiaoqiu, Chairman of SAIC Motor, added, “Electrification and smart vehicle transformation are redefining the industry. With this partnership, we aim to lead the market in intelligent, sustainable vehicle development and achieve steady growth.”

A Legacy of Collaboration

Since its inception, SAIC VOLKSWAGEN has served over 28 million customers in China, introducing iconic models like the Santana and ID.3, and driving the region’s shift toward electric mobility. The renewed partnership reinforces Volkswagen’s local development capabilities, including its Hefei innovation center, which is accelerating the creation of fully connected, intelligent electric vehicles.

By 2030, the Volkswagen Group plans to introduce over 30 electric models in China, further solidifying its role as a leader in the country’s rapidly evolving automotive market.

Media Contacts:

Robin Aschhoff
Volkswagen Group China | International Communications
+86 138 1104 4303
robin.aschhoff@volkswagen.com.cn

Dr. Christoph Ludewig
Head of International Communications | Volkswagen Group China
+86 138 1023 0447
christoph.ludewig1@volkswagen.com.cn

SOURCE: Volkswagen AG