Volkswagen said that electric vehicles can be developed and produced in China at about half the cost of Germany, showing that the German automaker is betting on "Made in China" to reclaim its share of the world's largest automobile market. The company stated that, relying on the innovation center built with hundreds of millions of euros in Hefei and the local supply chain, the development costs of some models have dropped by up to 50% compared to when they were produced in Germany in 2023, mainly due to more efficient battery procurement, shorter development cycles, and lower labor costs. Volkswagen also said that local R&D in China has shortened the overall vehicle development cycle by 30%, allowing engineering teams to simultaneously conduct software and hardware as well as vehicle validation, thus significantly accelerating product iteration.
Against the backdrop of losing positions in the top ten for pure electric and plug-in hybrid markets, and seeing its overall market share rapidly eroded by Chinese brands like BYD, Volkswagen plans to launch about 30 electric vehicles in China over the next five years, and considers expanding the export of vehicles made in China and promoting technological breakthroughs achieved in China to global operations. Since the end of 2022, Volkswagen has invested nearly 4 billion euros in China, including building the Hefei R&D center, investing in Horizon Robotics, collaborating with XPeng to develop platforms, and jointly researching autonomous driving AI chips. These investments contrast sharply with the 35,000 employee layoffs initiated by the company in Europe due to weak demand, highlighting its determination to "stay" in the Chinese market amid the general decline of foreign automakers.
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Original article: www.toutiao.com/article/1849834073609482/
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