Volkswagen’s Expansion into China’s EV Market: A Focus on Lifestyle and Innovation with ID.UX Sub-Brand

To expand its electric vehicle (EV) offerings in China, Volkswagen is introducing a new sub-brand called ID.UX. Targeting new customer groups, the brand combines Volkswagen’s traditional virtues with a design DNA focused on lifestyle. The first model under the ID.UX brand, ID.UNYX, will debut in 2024 and will feature a modern exterior design and a driver-centric interior with a new display and operating concept (HMI) aimed at young customers.

To foster innovation, Volkswagen is strengthening its local development ecosystem in China by increasing production, development, procurement, and battery production capabilities in the country. By the end of the year, the number of employees at the R&D site in Anhui is expected to reach 3,000 experts. The company is also increasing localization efforts to reduce development cycles significantly. Chinese partners like XPENG, Horizon Robotics, and Thundersoft will be involved in the development process early on.

In collaboration with XPENG, Volkswagen plans to launch two new mid-class vehicles by 2026. Additionally, employees at joint ventures CARIZON with Horizon Robotics and CARThunder with Thundersoft are working on developing innovative systems for autonomous driving, infotainment, and connectivity. These partnerships aim to enhance Volkswagen’s offerings in China and cater to the evolving needs of customers in the region.

Volkswagen’s expansion into China’s EV market is an exciting opportunity for the company to showcase its commitment to sustainability while also tapping into new customer demographics. With its focus on lifestyle and cutting-edge technology, ID.UX is poised to become a major player in China’s EV market.

Furthermore, Volkswagen’s investment in local development capabilities shows that it recognizes the importance of building strong partnerships with Chinese companies to succeed in this rapidly evolving market. By collaborating with XPENG and other partners like Horizon Robotics and Thundersoft, Volkswagen can create innovative solutions that cater specifically to Chinese consumers.

Overall, Volkswagen’s expansion into China’s EV market represents an exciting opportunity for both the company and the region as a whole. With its focus on sustainability and cutting-edge technology