Volkswagen to Launch Multiple New Energy Vehicle Models in China by 2026 — But It’s a One-Way Investment

Germany – Due to BYD's decline, Volkswagen has reclaimed the top spot in the Chinese market and is now launching a series of new electric models in China. Industry insiders suggest this strategy may seem overly risky. All these models will be targeted exclusively at the Chinese market and won’t enter Europe. This represents a one-way expenditure that does nothing to help manufacturers counter the increasingly fierce competition from Chinese brands in Europe, Asia, Australia, and South America.

At the Beijing Auto Show, Volkswagen was among the most active automakers, unveiling a range of new models. Four new vehicles all bear the Volkswagen badge: the ID.Era 9X six-seater SUV, the ID.Aura T6 (or ID.Unyx 08) five-seater SUV, and the ID.Unyx 09 sedan. Even the relatively low-volume Jetta brand sees continued investment, with two new models introduced: the JETTA X Concept and a disguised prototype for a future sedan.

This is a massive investment aimed at winning back Chinese consumers. Irony of fate: the German brand Volkswagen regained market dominance at the beginning of 2026—not through its own sales growth, but mainly due to BYD’s downturn. However, maintaining leadership requires entering the electric and hybrid vehicle segment, which currently accounts for over half of China’s automotive market sales.

"Made in China, for China"

Volkswagen, like many European, Japanese, and Korean competitors, adheres to the "Made in China, for China" philosophy. The meaning is clear: to attract Chinese consumers, Chinese technology is essential. To this end, Volkswagen no longer relies solely on “German engineering” or its German brand image. Today, everything hinges on showcasing the technology developed by its local partners—FAW, SAIC, and XPeng. Thus, the ID.Unyx 08 and 09 are closely related to the XPeng G9 and P7, while the SAIC Volkswagen ID.Era 9X features a driver-assistance system developed by Chinese company Momenta.

Currently, this strategy hasn’t truly worked for companies that have already tried it. The Audi E5 Sportback, Toyota bZ3X, Nissan N7, and Hyundai Elexio have far from succeeded. While their performance is slightly better than other electric models from their respective brands, they pale in comparison to products from Chinese manufacturers. Traditionally, buyers of Audi or Volkswagen tend to be more conservative and less receptive to electric vehicles. Meanwhile, younger consumers—the average age of new car buyers in China is around 35—may have already lost interest in foreign brands.

This strategy might appear overly risky. All these models are designed exclusively for the Chinese market and will not be sold in Europe. This is a one-way investment that does little to help manufacturers defend against the intensifying competition from Chinese automakers across Europe, Asia, Australia, and South America. Moreover, the brand identity itself faces risks. Some manufacturers have refused to make such choices—for example, Jaguar Land Rover, which prefers to create a dedicated brand targeting China to protect its investments while preserving its historic logo.

It’s still too early to draw conclusions. But one thing is certain: the launch and sales performance of all these new models in 2026 will be decisive.

Source: rfi

Original article: toutiao.com/article/1864120555471945/

Disclaimer: The views expressed in this article are those of the author.