Volkswagen is preparing to challenge Chinese competitors with locally developed models.

Volkswagen will launch three new electrified vehicle models developed using technologies provided by its partners in China in the next two weeks. The option comes at a time when international brands are struggling to establish themselves due to strong competition in the world's largest car market. As the largest foreign carmaker in China, Volkswagen had stated that it would complement its high production standards with locally developed technologies. ID.UNYX 08, the first of three models, will be unveiled on 16 April.

The ID.UNYX 08 is a full-size SUV equipped with VLA, a driver assistance system developed by Chinese partner Xpeng, and will use batteries from Contemporary Amperex Technology Ltd or CATL. THE ID. UNYX 08, Volkswagen's first electric and connected suv has been in production since mid-March at the Hefei plant. The ID.UNYX 08 will be unveiled on 16 April. The ID.ERA 9X which is the second of the three upcoming models is based on a joint venture between Volkswagen and SAIC Motor. It is the world's first model with an autonomous driving solution developed together with Momenta.

The ID.ERA 9X, as it has long been known, combines a CATL battery pack with a range extender to offer a range in electric mode of over 400 km and an overall range of over 1,600 km. The car will make its official debut on 25 April at the Beijing Motor Show. Volkswagen and SAIC have announced the launch of five alternative energy vehicle models this year. FAW-Volkswagen Automotive, the joint venture of the FAW Group with Volkswagen and also Audi, will present the third Vw model, the ID.AURA T6 to be unveiled on 24 April in Beijing.

The ID.AURA T6 will be equipped with a Lidar-based intelligent driver assistance system developed together with Carizon, a joint venture signed in 2023 by Volkswagen and Chinese start-up Horizon Robotics. Volkswagen has been greatly affected by the rapid electrification of the Chinese market, dominated by domestic brands such as Byd and Geely. Last year, electric vehicles accounted for 4.5% of Volkswagen's sales in China, a market where electrified cars accounted for 54% of total sales in 2025, up from less than 0.1% in 2013.

Volkswagen reported an operating profit of around EUR 958 million in China in 2025, down 44% year-on-year. The other manufacturers, both US and Japanese, also saw their market shares drop in the Chinese market, to around 13% each by the end of 2025. In recent days, Volkswagen Group China has announced that the brand plans to market more than 20 next-generation electrified vehicle models, all designed for local consumers, with the aim of countering competition from Chinese brands.