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Powering Forward with Latest ICV Technology: Volkswagen Group and FAW Seal New Model Roadmap for FAW-Volkswagen

    • Next milestone of the consistent “In China, for China” strategy: Strategic Cooperation Agreement between Volkswagen Group and FAW plans to bring eleven additional models of Volkswagen and Jetta brand tailored to the needs of Chinese customers, starting in 2026
    • Accelerated e-offensive: the new models will include ten New Energy Vehicles (NEVs), with six pure electric models (BEV), two plug-in hybrid models (PHEV) and two range-extenders (EREV)
    • Strong offer in entry-level e-car segment: First Jetta brand model will be electrified by 2026 to tap new customer groups in the fast growing electromobility market
    • The planning ties into the Group’s strategic product offensive in China: from 2025 to 2027, the Group will roll out around 40 new models – more than half of them are NEVs
    • Ralf Brandstätter: “Our enduring partnership with FAW is a strong pillar of our success in China. Aligned with our 'In China, for China' strategy, we are further advancing FAW-VW's product portfolio covering all powertrains, with a strong focus on NEVs, including BEVs, PHEVs and EREVs, to meet evolving customer needs. Leveraging Volkswagen Group's robust local R&D capabilities, we will technologically empower these products, making them state-of-the-art ICVs.”

[Wolfsburg/Beijing, March 17, 2025] The Volkswagen Group is powering forward in its transformation to take a leading role in the era of intelligent connected vehicles (ICV). Under a new agreement, Volkswagen Group and FAW have confirmed the future model roadmap for FAW-Volkswagen to strengthen the joint venture’s product portfolio, in order to meet the evolving demands of Chinese customers and tap into new market segments. Starting in 2026, FAW-Volkswagen plans to introduce ten new Volkswagen brand models, including nine NEVs, in diverse segments. To further develop its business model in the fast growing e-market, the Joint Venture will also electrify the Jetta brand. The first model will be launched by 2026, to add a strong offer in the entry-level segment. Following the consistent “In China, for China” approach of Volkswagen Group, all of these models are developed exclusively for the Chinese market. To address additional customer groups, the new models will follow an even more progressive design concept. FAW-Volkswagen will present a first concept car of the Volkswagen brand at Shanghai Auto Show.

 

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG responsible for China, and Chairman and CEO of Volkswagen Group China, said: "Our enduring partnership with FAW is a strong pillar of our success in China. Aligned with our 'In China, for China' strategy, we are further advancing FAW-VW's product portfolio covering all powertrains, with a strong focus on NEVs, including BEVs, PHEVs and EREVs, to meet evolving customer needs. Leveraging Volkswagen Group's local R&D capabilities, we will technologically empower these products, making them state-of-the-art ICVs. This strategic move also completes Volkswagen brand's overall product roadmap in China through 2030, solidifying its leading position with a customer base of over 40 million in the country. Our new technology set-up, exclusively tailored to China will enable our JVs to respond even more quicker and effectively to new customer requirements and market changes in the future.”

Chen Bin, Member of the Standing Committee of the CPC FAW Committee, Deputy General Manager of FAW Group, Director, Party Secretary, and General Manager of FAW-Volkswagen: “The signing marks a significant milestone in FAW-Volkswagen’s pursuit of high-quality development and high-level opening-up. Today, the global automotive industry is faced with significant opportunities and challenges. Both joint venture partners, FAW and Volkswagen Group, will continue to leverage over 30 years of partnership to drive strategic synergy and collaborative innovation. By accelerating the development of a new productivity ecosystem, we will integrate global expertise with local technology to foster FAW-Volkswagen’s long-term sustainable growth, enabling the company to deliver more competitive, market-driven, and intelligent mobility solutions that cater to the evolving needs of Chinese customers.”

 

Ambitious Product Expansion to Seize Market Potential

 

The new product roadmap is part of Volkswagen Group’s consistent “In China, for China” strategy to seize the dynamic market development especially in the e-vehicle segments.  

To capitalize on the compact BEV segment’s projected growth to 50% of the China’s BEV market, FAW-Volkswagen will launch two BEV models on the locally-developed Compact Main Platform (CMP). The cars will be equipped with high performance zonal E/E architecture CEA to enable fast and most advanced digital services and ADAS functions. Complementing this, for the first time, two PHEV models will be based on CMP, maximizing its flexibility to meet the surging market demand for hybridized vehicles. 

Additionally, a modal on the global MEB platform will also receive upgraded intelligent features with CEA. 

In the mid-class segment, where half of the current sales are already electrified vehicles, two pure-electric models based on an advanced future platform will be added, along with their range-extender variants. These models will address the diverse customer needs for longer driving ranges without compromising on the benefits of electric mobility.

Moreover, FAW-Volkswagen is envisaged to introduce an all-new fuel-powered model to further leverage the brand's absolute leadership in China’s ICE market.

 

Electrification of Jetta brand to broaden e-car portfolio of FAW-Volkswagen to entry-level 

 

The Jetta brand will launch its first all-electric model by 2026 as part of its strategic pivot to tap into China’s fast-growing entry-level BEV market, delivering competitive pricing and advanced intelligent features. Building on its strong heritage in the ICE area, Jetta aims to transform its core strengths also into the ICV era. Thereby, FAW-Volkswagen is further enhancing its strong business model.

 

Until 2030, the brands of FAW-Volkswagen will introduce over 20 all-new models to the market.

Empowering New Models with Volkswagen Group's Platform and Software Technology 

As part of its "In China, for China" strategy, the Volkswagen Group is powering forward its transformation in China by advancing capabilities in e-mobility, digitalization, and autonomous driving. In close collaboration with FAW-Volkswagen, Volkswagen Group (China) Technology Company (VCTC), the ICV innovation hub of the Volkswagen Group in China, and the Group’s automotive software company CARIAD China, will play a vital role in the development of  new models. The Compact Main Platform, developed by VCTC, will reduce the time-to-market by 30 per cent and reduce the costs by approximately 40% compared to traditional platforms.

The high performance zonal E/E architecture CEA, developed by VCTC and CARIAD China, in collaboration with local partners, will enable the rapid expansion of digital services in Volkswagen's China-specific vehicles. It allows for the seamless integration of advanced features like autonomous driving, which can be continuously updated and enhanced via over-the-air (OTA) updates. Moreover, CEA’s zonal structure significantly optimizes vehicle electronics by reducing the number of electronic control units in previous systems by up to 30%, streamlining the vehicle's electronic infrastructure. These advancements not only enhance the vehicle's performance and reliability but also make it possible to offer customers more cost-effective products, strengthening Volkswagen's competitiveness in the Chinese market.

Furthermore, the future ICE, PHEV and EREV models will incorporate Volkswagen industry-leading engine technology, enabling customers to enjoy high-performance while achieving outstanding fuel efficiency.

 

Entering Delivery Mode: Full Speed Towards “Target Picture 2030”

 

Volkswagen Group will launch about 40 new models in China from 2025 to 2027 - over half of these will be electrified, to seize the growth momentum of the Chinese market. The Group is thereby shifting to delivery mode, with intensive product offensive driven by the joint ventures.  With these initiatives, the Volkswagen Brand has solidified its comprehensive product pipeline in China through the end of the decade.

In 2025, the strong strategic plan of the Volkswagen Group in China will be coming to life with first tangible products and technologies. The upcoming Shanghai Auto Show will offer a captivating glimpse of the first highlights, including the progressive design concept of the new Volkswagen brand models, to be presented by FAW-Volkswagen.

 

Back row, from left: Ulrich Feuereis, First Vice President and CFO at FAW-VW; Stefan Mecha, CEO of Volkswagen China Passenger Cars Brand; Ralf Brandstätter, Member of the Board of Management of Volkswagen AG responsible for China, and Chairman and CEO of Volkswagen Group China; Chen Bin, Member of the Standing Committee of the CPC FAW Committee, Deputy General Manager of FAW Group, Director, Party Secretary, and General Manager of FAW-Volkswagen; Sun Huibin, General Manager of Strategy and Cooperation Department, FAW Group; Front row, from left: Martin Wiesner, Head of Regional Steering Group China of Volkswagen Group; Guo Yuanbo, Product Management Director, FAW-Volkswagen; Thomas Ulbrich, CTO of Volkswagen Group China, CEO of Volkswagen China Technology Company (VCTC); Li Songmei, Deputy General Manager of Strategy and Cooperation Department, FAW Group; Dr. Robert Cisek, Executive Vice President of Volkswagen Group China, Responsible for Product and Strategy; Deng Guohui, Director of Technical Development, FAW-Volkswagen.

 

From Left: Ralf Brandstätter and Chen Bin

 

Onsite group photo

 

 

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