SAIC, one of China’s leading automobile manufacturers, and the German Volkswagen announced this Friday several technological and energy cooperation agreements, aimed at the launch of three hybrid and two electric models.
The vehicles are expected to be launched on the Chinese market in 2026, marking a significant step in the collaboration between both companies, which maintain a strategic partnership in the Asian country, reported the official Chinese news agency Xinhua.
Volkswagen China Group CEO Ralf Brandstätter highlighted the importance of strengthening the strategic partnership with SAIC in China’s competitive electric vehicle market. “It is crucial to continue strengthening our strategic partnership with SAIC and advance the electrification of SAIC Volkswagen’s portfolio,” Brandstätter said, quoted by Xinhua.
SAIC, a state-owned company, was the most affected by the European Commission’s decision to increase customs duties on electric vehicles.
EU threatens to raise tariffs on Chinese electric car imports from July
SAIC vehicles received an additional 38.1% tax after the company failed to cooperate with the anti-dumping investigation from Brussels, a decision criticised by SAIC, which described it as a “violation of the principles of the market economy and the rules of international trade”. The term “dumping” means selling below the cost of production.
Last year, the electric models of the ID series of Volkswagen, did not exceed 3% market share in the electrical segment in China, which represents 50% of the German manufacturer’s global sales.
Electric vehicles accounted for 24% of new car sales in Chinain 2023, according to industry data. If hybrids are included, the share of new energy vehicles in total sales reached 36%.
Volkswagen is preparing to launch new models in collaboration with Xpeng, the Chinese electric car brand in which it holds a 4.99% stake, after an investment of 630 million euros in 2023.
Source: Observadora
