
At present, the market share of joint venture brands is being squeezed, and the "joint venture decline theory" has become rampant.
However, as a certain car company boss said, the advanced experience of joint ventures cannot be replaced by a few pieces of 8295 or a few sheets of Alcantara.
In the "basic" areas that are difficult for consumers to perceive, there is still a big gap between new companies that have been making cars for more than a decade and old car companies with hundreds of years of experience in making cars. The threshold for car manufacturing is not low, and once safety issues are involved, it is unbearable for individual users. After all, objectively speaking, the automobile industry is an industry that requires continuous large-scale capital investment and obtains long-term returns through large-scale production.
In the fiercely competitive Chinese auto market, local brands are trying their best to overtake others, while joint venture brands are facing a tough battle and are seeking to transform to new energy. Among them, SAIC Volkswagen, which ranks first among joint ventures, has a firm will to transform, has the strongest strength, and is the most urgent to take action.

June 27, 2024 SAIC Volkswagen signed a new energy technology cooperation agreement
On June 27, the SAIC Volkswagen New Energy Technology Cooperation Agreement was signed in Shanghai, in which the German shareholders, Volkswagen Group and SAIC Group, will jointly "empower technology" for the joint venture and develop three plug-in hybrid models and two pure electric models in China. It is expected that the jointly developed models will be launched on the market one after another from 2026.
On May 20, also in Shanghai, SAIC Group and Audi signed a cooperation agreement, officially launching the joint development of the SAIC Audi Advanced Digitized Platform. The new car will roll off the production line in 2025.
As the oldest joint venture brand, SAIC Volkswagen has not only deeply understood the needs of the Chinese market in the 40 years since its establishment, but also has a clear understanding and outlook on the past and future of the Chinese auto industry, and is actively developing new energy markets. The recent intensive strategic cooperation signings show its determination to transform and its rapid actions.
SAIC Volkswagen occupies the high ground of new energy joint venture brands in China
As one of the earliest car joint ventures in China, SAIC Volkswagen's 40 years have not only witnessed its own journey from inception to growth, but also reflected the 40 years of rapid development of China's automobile industry. It has also witnessed China's process from a weak automobile country to a major automobile country and then to its rise on the international stage.
In fact, in the current hot smart electric track, SAIC Volkswagen has already made its layout early and is one of the leaders in the market.

SAIC Volkswagen ID.6 X, ID.3, ID.4 X
SAIC Volkswagen has successively launched ID.4 X, ID.6 X, ID.3 and Audi brand Q5 e-tron pure electric vehicles, and will use ID.3 as the "big single product" anchor in 2023, sounding the clarion call for joint venture new energy vehicles. In the first half of this year, SAIC Volkswagen's cumulative sales of new energy vehicles reached 60,000 units, doubling year-on-year, continuing to lead the joint venture pure electric camp.

SAIC Audi Q5 e-tron
Regarding the new energy wave, SAIC Volkswagen is not "running blindly", but will make targeted plans based on actual market needs and industry development trends.
In recent years, my country's PHEV sales have exploded, with an annual growth rate of over 150%. In 2023, domestic PHEV (including extended-range) sales have reached 2.3 million units, HEV sales have reached 800,000 units, and total hybrid passenger car sales have reached 3.1 million units, a year-on-year increase of 53%.
In the first quarter of this year, my country's pure electric vehicle sales reached 1.305 million units, up 13.3% year-on-year, while PHEV sales reached 784,000 units, up 81.2% year-on-year. PHEV has become a new market trend.
Some experts predict that PHEVs, including extended-range electric vehicles, will contribute one-third of my country's new energy vehicle sales in 2024, and the PHEV market share is expected to reach 30% in 2025-2030.
According to calculations, based on the average pure electric driving mileage of PHEV users accounting for 45%, the energy cost can be saved by about 50% compared with fuel vehicles. For users with a higher proportion of pure electric use, the economic benefits of PHEV use will be more obvious.
In this context, promoting diversified new energy technology paths including PHEV may be the right approach to embrace the new era.
In fact, the automotive industry has reached a consensus on the medium-term market structure: 1/3 pure electric vehicles, 1/3 hybrid vehicles, and 1/3 pure fuel vehicles. SAIC Volkswagen's product strategy is based on this trend.
The "SAIC Volkswagen Technology Cooperation Agreement" mentioned the development of three plug-in hybrid and two pure electric models, which is the optimal product matrix formulated by China and Germany based on actual market trends.
A model for the new era of joint ventures: bringing out the best technologies of each party
It is worth noting that the new car developed by both parties will be based on a new pure electric platform, and both the Chinese and foreign parties have brought out their most advanced technologies for cooperation. As early as 1972, Volkswagen Group began the research and development and testing of new energy vehicles, and has more than 50 years of research and development and manufacturing experience in the field of pure electric vehicles. Volkswagen Group is also making full use of the growth potential and innovation advantages of the Chinese market, continuing to expand its local research and development capabilities in the fields of electrification, digitalization and autonomous driving, and further accelerating local decision-making and development processes.
SAIC Motor has an excellent local supply chain in China, and these resources can be used by SAIC Volkswagen. In recent years, the group has invested nearly 150 billion yuan in research and development, obtained more than 26,000 valid patents, and successfully launched seven internationally leading technology bases, which are undoubtedly a strong support for the new cooperation with SAIC Volkswagen.
The strong alliance between China and Germany will help SAIC Volkswagen achieve a development process that is target cost-oriented and product performance-centric, thereby accelerating the development process and shortening the new car birth cycle by 30%.
Hybrid and electric vehicles share intelligence, leading a new intelligent experience for gasoline vehicles
In the past two years, the term "smart electric vehicle" has been frequently mentioned, leading to a misconception among industry professionals and consumers that only electric vehicles can achieve intelligence. Obviously, this misunderstanding needs to be clarified.
At present, the number of fuel vehicles in use is still huge, and the penetration rate of new vehicles is still dominant. The demand for intelligence among fuel vehicle users should be seen and met.
Based on this, in addition to the new cooperation, new models and new products signed this time, SAIC Volkswagen hopes to bring new intelligent experiences to its existing product lines.

SAIC Volkswagen Tiguan L Pro
The recently launched Tiguan L Pro is a revolutionary product that breaks the inherent perception that "oil cars are not smart" based on a deep insight into the deep needs of Chinese consumers, using digital experience and leading intelligent driving systems. Through the 6-screen interactive digital space, the Tiguan L Pro provides users with an immersive futuristic smart cockpit. Almost all the functions in the car are integrated into the central 15-inch ultra-large smart 2K floating screen. In addition, the head-up display system, the 10.3-inch full-digital LCD instrument that supports AR real-life navigation, and the 11.6-inch co-pilot entertainment screen that allows the co-pilot to entertain himself can fully meet the needs of each seat for infotainment.

SAIC Volkswagen Tiguan L Pro
This car has all the cool stuff that startups have, but SAIC Volkswagen can also provide consumers with the reliability and stability that startups don’t have, with its 40 years of advanced manufacturing experience.
Under the diversified product strategy of oil and electricity, SAIC Volkswagen's sales in the first half of the year also blossomed in many areas. In addition to the doubling of new energy vehicle sales mentioned above, it also achieved considerable growth in the field of fuel vehicles. The cumulative sales of the Tiguan family reached 71,000 units, an increase of 18% year-on-year; the cumulative sales of the Passat reached 107,000 units, an increase of 25.3% year-on-year; and the cumulative sales of the Touron family reached 22,000 units, an increase of 18% year-on-year.
The sales volume of all SAIC Audi models under SAIC Volkswagen also reached nearly 20,000 units, a sharp increase of 107% year-on-year.
It can be said that SAIC Volkswagen has not only taken a differentiated path in the new energy transformation, but also maintained its leading position in the fuel vehicle field. This is undoubtedly the result of deep cultivation of the Chinese market and adherence to long-termism.
at last
Objectively speaking, the Chinese auto market is large enough, and independent brands, joint venture brands, and new forces are all indispensable components. Healthy competition among enterprises not only promotes the healthy development of the industry, but more importantly, benefits Chinese consumers.
The automotive industry never only fights for the present, but also for the future. Historical experience tells us that fighting alone and killing the goose that lays the golden eggs is never a wise long-term solution. Only the reliability verified by time and the bottom line that will never waver are the only rules to stand tall in the long river of time. Only by forming alliances and sharing the beauty together can we overcome obstacles and survive the cycles of prosperity and decline.