On Friday, Volkswagen announced its plans to develop a new platform tailored for entry-level electric vehicles in China. This strategic move aims to cut costs by incorporating more local components, as the German automaker endeavors to regain prominence in the world’s largest auto market.
Dubbed the A Main Platform, this innovative architecture will be crafted specifically to align with Chinese consumer preferences concerning batteries, electric drives, and electric motors, according to Ralf Brandstaetter, Volkswagen’s China chief. During a visit to the new EV development and procurement center in Hefei, he emphasized that Chinese car buyers, often younger and tech-savvy, crave an immersive digital experience from their vehicles.
Derived from the modular electric drive matrix (MEB), Volkswagen’s existing electric-only platform introduced in 2019, the A Main Platform will heavily rely on Chinese suppliers. Brandstaetter anticipates its market readiness by 2026, a notable acceleration with a one-third reduction in platform development times compared to previous efforts.
In its broader global strategy, Volkswagen plans to introduce ten additional EV models by 2026, aiming to streamline the time to market for new models from four years to a more competitive 2.5-year average, aligning with the industry standards set by its Chinese counterparts.
Acknowledging China’s price-sensitive market, Brandstaetter emphasized the necessity for Volkswagen to optimize costs to ensure profitability and sustainability as electric vehicle volume increases. The company aims to drive advancements in technology, speed, and cost efficiency to stay competitive.
Ludger Luehrmann, Chief Technology Officer of Volkswagen Group China Technology Company (VCTC), the Hefei-based center responsible for developing the platform, highlighted successful cost reductions, such as a 37% price drop in dashboard displays achieved by switching to a Chinese supplier.
This strategic shift comes as Volkswagen faces fierce competition from local electric vehicle manufacturers in China, leading to the loss of its title as the best-selling car brand to BYD. The company’s emphasis on gasoline vehicles, whose sales have been declining, further motivated this shift in strategy. Despite recent success with its top-selling EV, the ID.3, Volkswagen is actively recalibrating its approach to navigate the rapidly evolving Chinese automotive landscape.
