Volkswagen Unveils Plan to Regain Ground in China with 11 New Models

Volkswagen plans 11 new models, including EVs and hybrids, to regain market share in China by 2026. Can the German giant compete with BYD and Xpeng?

Volkswagen is fighting to stay afloat in China’s rapidly evolving automotive market. Once the undisputed foreign leader, the German automaker is now losing ground to local players like BYD and Xpeng.

To counter this decline, VW and its joint venture partner FAW Group have announced the launch of 11 new models starting in 2026. Most of them are electric vehicles and hybrids designed specifically for Chinese consumers. The lineup includes six fully electric vehicles, two plug-in hybrids, and two range-extended EVs.

This move comes as Chinese rivals continue to raise the bar. BYD recently introduced its Han L and Tang L models, equipped with next-generation charging technology that, according to the company, can add up to 400 kilometers of range in just five minutes. Meanwhile, Xpeng is gaining momentum with its G6 and G9 SUVs, which offer advanced autonomous driving features and rapid charging capabilities — all contributing to growing consumer interest.

Government support remains a powerful force behind local manufacturers. China continues to provide generous subsidies for EV buyers, tax breaks and grants for producers, and significant investments in public charging infrastructure. The country currently leads the world in EV infrastructure and plans further expansion in the coming years.

Volkswagen is working to catch up. The company invested $700 million in Xpeng and signed agreements to co-develop new models and technologies. It also plans to roll out an ultra-fast charging network across China.

Despite aiming to sell up to 4 million vehicles annually in China by 2030, experts caution that the road to recovery will be difficult. VW’s market share continues to shrink while the price war escalates. In response, the company has allocated over $500 million in purchase incentives and plans to introduce a budget-friendly EV — the ID.1 — by 2027, targeting a starting price of around $21,000.

The outlook is clear: without major transformation and technological breakthroughs, Volkswagen risks losing relevance in the world’s largest auto market. China is evolving faster than ever — and VW must accelerate to survive.

Source: autoblog.com