Volkswagen’s China Gamechanger: Electric Vehicle Sales Soar by 23.2% in 2023

In 2023, Volkswagen’s new car sales in the Chinese market increased by 1.6% compared to the previous year, selling 3.24 million units. Among these, battery electric vehicles saw a 23.2% increase in sales, selling 191,800 units. The ID.3 model sold the most, with over 75,700 units sold.

Volkswagen has set a goal to maintain its position as the market leader in China by launching more than 30 electric models by 2030 and more than 30 new cars to be produced in China by 2027. The plan is to increase profitability from internal combustion engine vehicles to electric vehicles.

Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, announced that they are customizing vehicles to match the desires of Chinese customers, such as intelligence, connectivity, and automation, through the ‘in China, for China’ strategy.

This year, the electric car-only joint venture, Volkswagen Anhui, plans to start production of its first model and expand the group’s product portfolio.

Audi, which sold 729,000 units in 2023, an increase of 13.5%, plans to start production of the Q6 e-Tron SUV at the Audi FAW NEV company’s PPE factory in Jilin Province, Changchun, by the end of this year. From 2026, the models of Chinese electric car startup Xiaopeng are expected to join Volkswagen’s product lineup through a partnership.

Xiaopeng sees the collaboration with Volkswagen as characterized by mutual trust and high efficiency. Both sides completed the feasibility studies of the joint development project at the end of last November and are making very efficient progress as a company-wide joint research and development team, with the second stage completion ahead.

To utilize local innovation capabilities and respond quickly to Chinese customers’ demands, the group established the Volkswagen China Technology Company (VCTC) in Hefei, Anhui Province, in May last year. VCTC, which started operations in January, can shorten new product and technology development time by about 30%. It is developing the first China-specific electric platform, the China Main Platform, which will be the basis for additional e-models from 2026. This platform, which has achieved a development time of 36 months, one-third shorter than the group’s previous average, integrates China-specific solutions for batteries, electric drives, and electric motors, ensuring cost efficiency and quick market readiness.