Volkswagen Targets China With Entry-Level Electric Vehicle Platform

In an effort to regain market dominance in China, Volkswagen VWAGY has announced plans to create a platform specifically for entry-level electric vehicles within the region.

What Happened: As reported by Reuters, Ralf Brandstaetter, Volkswagen’s China chief, announced the new architecture, known as the A-Main Platform, during a visit to the company’s EV development and procurement center in Hefei. This platform is designed to align with Chinese consumer preferences, including specific battery, electric drive, and electric motor requirements.

The A Main Platform, which is an evolution of the modular electric drive matrix (MEB), Volkswagen’s existing electric-only platform, will predominantly utilize Chinese suppliers. The company aims to have the platform market-ready by 2026, a development timeline that is a third faster than previous platforms.

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Last year, Volkswagen lost its leading car brand position in China to BYD. In response, the automaker is expanding its product range, focusing on the entry- and mid-level EV segment where it’s currently outpriced by local electric-only competitors.

The new platform is being developed by the Volkswagen Group China Technology Company (VCTC). With an investment of roughly 1 billion euros ($1.1 billion) in the creation of VCTC, Volkswagen anticipates the company will employ over 2,000 individuals in the future.

In addition to the new platform, Volkswagen is collaborating with Chinese EV maker Xpeng Inc to augment its EV lineup. Two new models are currently in development and are expected to hit the market by 2026.

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