Volkswagen boosts China ties with new SAIC partnership on EVs

The Volkswagen Group is officially strengthening its cooperation with the Chinese giant SAIC. The partnership aims to provide tangible benefits to both parties, particularly reinforcing the Germans' position in the Chinese market.

The new agreement between Volkswagen and SAIC took official form on June 27, 2024. Plans to construct a joint factory and produce many electrified models are in place. The first units are expected to hit the market as early as 2026.

These will include fully electric vehicles, hybrids, and plug-in hybrids. At least five models are planned, but both parties do not rule out further expanding the lineup.

It is worth mentioning that this will not be the first instance of German-Chinese cooperation. The SAIC-VW joint venture has been operating in China for a long time, producing local versions of Volkswagen, Skoda, and Audi models. However, up until now, these have mainly been combustion engine cars. The future, however, lies in electrification.

Notably, the Germans are simultaneously collaborating with another Chinese manufacturer, Xpeng. In February 2024, they presented a plan to create two electric compact cars. However, the details remain unknown for now.