The VW Group and SAIC have further deepened their partnership in China as the pair plan to jointly develop three PHEVs and two BEVs. According to the agreements, these models will be released to market as soon as 2026, and through to 2030.

VW and SAIC deepen China partnership with new EVs

A new partnership

Under the agreement signed on 27 June, SAIC revealed that five electrified models are set to be released to market as soon as 2026 to 2030. However, specific brands or specifications for these new models have not yet been disclosed.

This agreement is just the most recent advancement of a relationship that spans back to 1985 and aims to speed up the progress of EV development.

Previous agreements

This announcement follows Audi, VW Group subsidiary, signing a cooperation agreement with SAIC in May to develop a China specific platform on which the pair will release three BEVs from 2025.

Similarly in April this year, VW and Xpeng entered into a framework agreement to collaborate on Electrical/Electronic vehicle architecture for the Chinese market. This came after VW acquired 5% stake of Xpeng in the summer of 2023, as part of this the pair agreed to jointly develop two EV for the Chinese market for release in 2026.

Rho’s evaluation, the role of partnerships in the China market

In April this year, Oliver Blume, CEO VW Group, laid out VW’s aggressive strategy to increase its market share in China, he highlighted the role of strengthening its partnerships with local players.

Historically, ex-China OEMs have done well in the Chinese market selling ICE vehicles on mass. However, as vehicle sales have become increasingly electrified, EV sales of these legacy OEMs have not reflected historical figures. These OEMs have been losing market share to domestic brands that are producing more advanced EVs. Subsequently, local partnerships are crucial.  

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