(March 17): Volkswagen AG and its long-standing partner FAW Group will launch 11 new models exclusively for the Chinese market, as it seeks to shore up declining market share in the world’s biggest auto market. 

The line-up includes six electric vehicles (EVs), two plug-in hybrids and two range-extended EVs under the Volkswagen brand, which will be introduced to China starting in 2026, the company said in a statement on Monday that details a new strategic agreement between the carmakers. The first electric model of the Jetta brand will be released next year to tap into rising demand for EVs, with a focus on the entry-level market, it said. 

The new models will come with high-performance digital features, such as autonomous driving capabilities and over-the-air updates, Volkswagen said. Beyond electrification, Volkswagen will incorporate its engine technologies in future internal-combustion engine, plug-in hybrid and extended range models, it said. 

Volkswagen is seeking to win back market share it has lost to domestic carmakers like BYD Co that focus on swiftly manufacturing tech-laden EVs that are popular with Chinese drivers. The German parent of brands including Audi, Skoda and Porsche saw global deliveries drop last year, including a 9.5% slump in China, where competition has intensified and economic headwinds are weighing on consumer spending. 

The new technology setup, exclusively tailored to China, will enable the company’s joint ventures to respond more quickly, and “effectively to new customer requirements and market changes in the future”, Volkswagen’s China head Ralf Brandstaetter said in the statement. The company’s shares rose 1.1%.

Tech is a core focus for the automaker’s plans in China, and it is already partnering with Xpeng Inc on software and ultra-fast charging. Volkswagen is targeting sales of four million vehicles annually in China by 2030. It is set to roll out approximately 40 new models between 2025 and 2027, more than half of which will be EVs.

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