VW’s subsidiary Jetta to develop EVs in China

In China, Jetta is no longer the Golf-format sedan model that was also sold in Europe for a time, but a VW brand for China founded in 2019, which is geared towards affordable vehicles that are visually independent of the VW models, but so far without electric drives. Jetta is part of Volkswagen’s joint venture with FAW. Back in March, an electrification offensive was announced at Jetta with eleven new energy vehicles, including six pure electric models, two PHEV models and two EREV models. The BEV and PHEV models are to be based on the Compact Main Platform (CMP), which Volkswagen has developed for the Chinese market. No details were known about the two EREVs in March.

Now the launch of the first models is becoming concrete: in Chengdu, the capital of the Chinese province of Sichuan, Volkswagen Group China, FAW, and the Chengdu Economic and Technological Development Zone have signed the ‘Jetta Business Development Cooperation Agreement’ to establish a new subsidiary. This is part of the plan to expand the Jetta cooperation between VW and FAW.

The new electric models, which are to be built in Chengdu, are not only planned for China but will also be offered in other Asian markets. The electrified models and a high degree of vehicle connectivity should also increase the success of the Jetta brand, which has been rather modest to date. In the current year, around 60,000 Jettas were sold in China by the end of July. According to the new plans, once all of the announced New Energy Vehicles are on the market, Jetta sales should rise to between 250,000 and 300,000 units per year. At least that is what the German publication Manager Magazin reports, citing insiders.

Jetta is also intended to boost VW’s previously sluggish electric car sales in China. In addition to the electric drive and connectivity functions, which are becoming increasingly important in China, the Jettas are expected to score points with their price. The first model, which will probably be presented at Auto China next April and is expected to go on sale shortly after the trade fair, is to be offered for less than 100,000 yuan, currently valued at around 12,000 euros. VW is not yet represented in this price segment in China.

This price structure is to be made possible by local development and production. With the CMP and cooperation with local suppliers, VW’s China boss Ralf Brandstätter wants to reduce costs by 40 per cent and develop the vehicles 30 per cent faster. The corresponding VW models are also set to debut in 2026, but will cost around 4,000 euros more, according to Manager Magazin.

faw-vw.com (in Chinese), manager-magazin.de (in German)

This article was first published by Sebastian Schaal for electrive’s German edition.