Volkswagen will develop a new platform for affordable electric vehicles

The German manufacturer has just announced its intention to develop a new platform for affordable vehicles, with the aim of thereby strengthening its position in the Chinese market. The news was recently disclosed by Ralf Brandstaetter, the brand’s top executive in this Asian country, coinciding with the opening of a new electric vehicle development centre in Hefei.

According to the latest reports, with this new platform Volkswagen hopes to significantly reduce production costs, by using a greater number of locally sourced components than those currently used in the brand’s MEB-based models sold on the Chinese market. These are the ID.3, ID.4, ID.6 and ID.7. This new platform is expected to be ready by 2026.

The current sales volume of Volkswagen in the Chinese market, below expectations, has made it very clear to the company’s management that this market is very price-sensitive, and that optimising costs is therefore essential. BYD overtook Volkswagen in business volume in China at the end of 2022, mainly due to the drop in sales of the German manufacturer’s combustion-engine vehicles, which was not offset by the increase in sales of those with a fully electric powertrain.

A decisive factor

The reduction in the price of the ID.3 on the Chinese market this past summer is a good proof of this, as its sales went from around 2,200 units a month to nearly 10,000. Volkswagen’s new platform will allow the German manufacturer to sell affordable vehicles in this Asian country at a price that, at current exchange rates, will even be below 20,000 euros.

The plans of Volkswagen apparently involve introducing four models based on this new platform into the Chinese market, which will be produced by the joint ventures the company has already set up with SAIC and FAW. In addition, the brand intends to sell two other electric models in the same market, developed jointly with the Chinese manufacturer XPENG.