"Those with shared aspirations do not consider mountains and seas as obstacles." Forty years ago, SAIC Motor Corporation and Volkswagen Group joined forces to start a significant partnership, and they have now decided to extend their collaboration into a new phase of joint venture cooperation 2.0 within China's automotive industry.
On November 26, during the 40th anniversary of SAIC Volkswagen, SAIC Motor Corporation and Volkswagen Group signed an agreement in Shanghai to extend their joint venture period until 2040.
SAIC Volkswagen has been a pioneer during China’s reform and opening-up, as well as a model for Sino-German economic cooperation. In October 1984, representatives from China and Germany officially signed a joint venture contract at the Great Hall of the People in Beijing, marking SAIC Volkswagen as one of the earliest automobile joint ventures in China. Through years of joint efforts by both partners, China's automotive parts industry has experienced a leap from nothing to a bustling market, accelerating the formation of a modern automotive industry system in the country.
This marks the second renewal of the agreement, extending the joint venture period to 55 years. The early renewal is a testament to both parties’ recognition of the achievements over the past 40 years and reflects their confidence in the future development of the joint venture, the Chinese automotive industry, and even the broader Chinese economy. It signifies that both shareholders are prepared to collaboratively empower the future development blueprint of SAIC Volkswagen, which is now clear and robust.
"Volkswagen Group and SAIC Motor Corporation are pioneers in China's personal mobility sector. Forty years ago, we partnered to establish one of the earliest automobile joint ventures in the country. To date, SAIC Volkswagen has earned the trust of over 28 million users. This renewal of our joint venture contract highlights the far-reaching significance of our partnership and underscores the importance of the Chinese market within Volkswagen Group's global strategy. Upholding the 'In China, for China' strategy, we are accelerating SAIC Volkswagen's transformation in all aspects and plan to launch a new generation of electric vehicles by 2026. This will enable both sides to achieve substantial economic and technological returns from our collaboration,” stated Berndt, managing director responsible for Volkswagen Group’s operations in China and chairman and CEO of Volkswagen Group (China). “With the new cooperation agreement, we will inject more R&D resources into SAIC Volkswagen in emerging technology areas, allowing us to more deeply integrate into China's industrial ecosystem and fully leverage local innovation capabilities. Consequently, we will be able to tailor exclusive products for Chinese customers, positioning ourselves to lead in the era of smart connected vehicles.”
Wang Xiaoqiu, chairman of SAIC Motor Corporation, emphasized: “Those with shared aspirations do not consider mountains and seas as obstacles. Forty years ago, Volkswagen's insight brought it across the globe to China, working with SAIC to pave the way for joint ventures in the Chinese automotive industry, charting a mutually beneficial path for international cooperation. In light of the global trends towards electrification and intelligentization of the automotive industry, both sides must join forces, innovate together, and accelerate the aggregation of innovative strength to lead global green development. As the first domestic new energy vehicle manufacturer to achieve 'two million' in domestic and overseas sales, SAIC is leading the industry with its innovative smart electric technologies and is making strides in key technologies like solid-state batteries, advanced intelligent driving, and smart chassis. We aim to create a new technology entity with 'a strong heart, a robust body, and an intelligent brain.' Together with our partners, we will continue providing technological empowerment to SAIC Volkswagen, ushering in a new phase of our joint cooperation and actively contributing innovative strength to the high-quality sustainable development of China's automotive industry and the transformation of the global automotive sector.”
In response to the automotive industry’s trends of transformation and upgrades, both shareholders will leverage their respective advantageous resources to support SAIC Volkswagen in developing various new models for the Chinese market, including pure electric and plug-in hybrid vehicles, continually creating products that resonate with the Chinese market. By 2030, SAIC Volkswagen plans to launch 18 new models, of which 15 will be specifically developed for the Chinese market.
In the fuel vehicle sector, SAIC Volkswagen is focusing on the smartization of traditional vehicles. This year, the launch of the two new models, Tiguan L Pro and Passat Pro, kicked off the Pro family lineup, with “the smartest fuel vehicles” achieving record high sales across various segments and garnering excellent user reviews, indicating initial success in smart fuel vehicle implementations. By early 2025, the fully upgraded Touareg Pro will also be launched, completing the Pro family's trilogy.
In the new energy sector, the ID. family from SAIC Volkswagen has achieved exceptional quality and intelligent features, with cumulative sales surpassing 100,000 units in the first ten months of this year, securing a leadership position in the joint venture’s pure electric market. Additionally, SAIC Volkswagen will continue expanding its product lineup, introducing brand new pure electric models, range-extended models, and plug-in hybrid models. In mid-2025, the AUDI brand will launch its first high-end intelligent connected electric vehicle. Starting in 2026, two compact electric vehicles tailored for the Chinese market based on a specially designed CMP platform will be introduced to the market, along with three plug-in hybrid models and two range-extended models entering the realm of electric mobility.
Based on the new development strategy and product structure of the joint venture, both shareholders are also accelerating their comprehensive assessment, adjustment, and upgrading of SAIC Volkswagen's capacity layout, gradually phasing out fuel vehicle production while increasing the transition to intelligent connected new energy vehicle manufacturing.
In today's globalized world, energy conservation and carbon reduction have become one of the core strategies for enterprises. In 2023, SAIC Volkswagen upgraded its CSR strategy to an ESG “Growth Strategy,” establishing six strategic pillars centered around environmental, social, and governance areas, directing the company's sustainable development goals. By driving technological innovation to advance intelligent technologies, SAIC Volkswagen is continuing to build “zero-impact factories” and is committed to reducing carbon dioxide emissions by 25% compared to 2018 by 2030.
Since its establishment 40 years ago, with the support of both shareholders, SAIC Volkswagen has consistently adhered to its German quality gene, actively integrating Chinese innovative technologies, and continuously producing high-quality products and services for Chinese consumers. As China promotes high-level opening-up and the global automotive industry accelerates its transformation, this renewal not only opens a new chapter in SAIC Volkswagen's high-quality development, but also writes a new narrative of win-win cooperation in the Chinese and international automotive industries.
