(CercleFinance.com) – Volkswagen Group detailed on Wednesday its strategy aimed at conquering China, which is today its second largest market behind Germany.
The automobile giant explains that it intends to be able to compete by 2026 with local manufacturers of entry-level ‘compact’ vehicles, a segment expected to ultimately represent more than half of the market.
To do this, VW explains that it wants to rely on a local platform called ‘CMP’ which is supposed to allow it to reduce its costs in electrical and electronics by 40%, thanks in particular to a collaboration with Xpeng in batteries.
At the same time, the use of a digital architecture developed at the local level, called ‘CEA’, should once again allow it to reduce its digital costs and accelerate product development.
Ultimately, Volkswagen wants to increase its operating profit in China to more than two billion euros by 2027 and to around three billion by the end of the decade.
The manufacturer plans to sell around four million vehicles in China by 2030, representing a market share of around 15%.
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