Volkswagen-SAIC Partnership Extended to 2040: A Commitment to Innovation
Volkswagen Group and SAIC Motor have extended their longstanding partnership until 2040, marking the 40th anniversary of their collaboration.
December 12, 2024- Volkswagen Group and SAIC Motor have extended their longstanding partnership until 2040, marking the 40th anniversary of their collaboration. The extension, announced in November, adds 10 years to their joint venture agreement and underscores a commitment to advancing electrification and innovation in China’s dynamic automotive market. Under their "In China, For China" strategy, SAIC Volkswagen plans to introduce 18 new models by 2030, including eight electric vehicles (EVs). The partnership will also prioritize transforming SAIC Volkswagen’s production network, focusing on cost-effectiveness and enhanced productivity amid growing demand and competition in the EV market.
Volkswagen has faced a 10% drop in vehicle deliveries in China, its largest market, during the first three quarters of 2024. In response, the automaker aims to launch 40 new models in the country by 2030, half of which will be electrified. By then, the company plans to offer more than 30 electric models in the market. SAIC Volkswagen will roll out two EV models by 2026, utilizing its newly developed Compact Main Platform, which features zonal electric architecture—a first for the Volkswagen Group. Ralf Brandstätter, Volkswagen AG’s board member for China, highlighted the strategic importance of integrating into China’s innovation ecosystem to secure the partnership’s economic and technological future.
SAIC Motor Chairman Wang Xiaoqiu emphasized the transformative trends of electrification and intelligent vehicle technology. He reiterated the importance of customer orientation and innovative strength, promising breakthroughs driven by “China Speed.” Many of SAIC Volkswagen’s sites are now producing EVs, with others sold as part of a strategic realignment. Beyond its partnership with SAIC, Volkswagen recently launched a joint venture with Rivian, named “Rivian and VW Group Technology,” to develop advanced electrical architecture and software for future vehicles.
