Volkswagen plans to shift most China-made models to a new platform by 2030

Volkswagen plans to build most of the vehicles it sells in China on a new software-led electronic architecture by 2030 as it seeks to regain ground in the world’s largest auto market. The platform, developed initially with Chinese EV maker Xpeng, is expected to significantly cut development time and costs.The company said the China Electronic Architecture (CEA) allows vehicles to be developed up to 30 per cent faster and at costs around 40 per cent lower than those based on Volkswagen’s German-developed MEB platform. These gains come from the use of centralised control units and a higher level of in-house component production. The target of shifting “most” China-made models to the CEA by 2030 was outlined by Liu Ran, a spokesperson for Volkswagen Group China Technology, during a visit to the company’s Hefei manufacturing hub. The strategy comes as Volkswagen faces intense competition in China, where it has lost market share to domestic rivals such as BYD and Geely, which have launched new, feature-rich models at a faster pace. In 2024, Volkswagen was overtaken by BYD and slipped to third place after reporting a 17.4 per cent decline in fourth-quarter sales.At the Hefei facility, which houses a CEA laboratory staffed by about 850 engineers, most of them Chinese, employees said teams have been given greater decision-making authority. Executives said this autonomy is aimed at aligning development speed with local market demands while maintaining Volkswagen’s standards for quality and reliability.Volkswagen began production of its first China-built model based on the CEA, the electric SUV ID. UNYX 07, late last year. The company plans to add four more models this year and around 10 additional vehicles in 2027, including some powered by combustion engines. Volkswagen said its collaboration with Xpeng on the architecture concluded last year, with further development now led internally.