Volkswagen has a China problem. And he can’t fix it himself
- With VW EV sales in China falling 34% in the first half of 2025, it is turning to local partners to help it develop more attractive China-specific models.
- New VW ID. The Unyx 08 is co-developed with Xpeng and shares its 800-volt platform with the G9 SUV.
- It is one of VW’s new EVs made “in China for China”. The company expects to have 30 China-specific models by 2030.
Volkswagen’s electric car sales are plummeting in China, but it hopes a new electric car it developed with Xpeng will turn its fortunes around. Touareg-sized VW ID. The Unyx 08 is the result of a partnership and looks like no other vehicle in the manufacturer’s global portfolio. It is part of the manufacturer’s “Made in China for China” strategy and was shown with an ID. Evo design study at the Shanghai Motor Show in April.
Two other concepts were unveiled in Shanghai this year, and all three were from different Chinese joint ventures. id. The Unyx 08 is manufactured by Volkswagen Anhui and is the third model in ID. The Unyx series follows the 06 crossover and the 07 sedan, both fully electric. Production of the 08 is scheduled to begin in 2026.
The 08 will be available with two sizes of lithium iron phosphate (LFP) batteries and will offer single and dual motor configurations. It will have a maximum CLTC range of over 700 km (434 mi). VW says it’s also the brand’s smartest EV to date, with the necessary automated driving technology to be called upon to pick up the driver from a parking lot, in addition to the usual semi-autonomous driving features offered by other VW models.
08 was created with the help of Xpeng. Volkswagen has acquired a 5% stake in the Chinese carmaker in 2023 to help it quickly bring more electric cars to market. These cars were not built on the MEB platform or any other platform of the VW concern, but the companies are now working more closely together. The new 08 shares its 800-volt underpinnings with the Xpeng G9. The platform has a peak charging power of over 300 kilowatts, which for the G9 is good for a 10% to 80% charge time of around 20 minutes.
In the first six months of 2025, sales of Volkswagen’s electric cars in China fell 34%, with just 59,400 vehicles delivered compared to 90,600 in 2024. Those 2024 numbers already represented a decline; After all, as late as 2023, VW was still China’s largest automaker by sales. So 2025 is VW’s second year of declining sales, so it’s turning to its joint ventures and Chinese partners to try to launch vehicles that local buyers will actually consider.
The other two concepts presented in Shanghai this year will also become production models. The biggest one is ID. SAIC Volkswagen’s Era study is a full-size range-extending SUV that can travel 300 km (186 miles) in electric mode and more than 1,000 km (620 miles) on a full tank. id. The Aura Concept showcases a sleek sedan that will be produced through the FAW-Volkswagen joint venture. It is the first car on VW’s new compact main platform (CMP).
This new China-specific architecture will feature the first AI-powered Advanced Driver Assistance System (ADAS), introducing a new feature called Urban Navigate on Autopilot, with eventual promises to offer Level 3 fully automated driving.
Across the entire VW Group, the goal is to offer around 30 electric models in China by 2030, and most of them will be market-specific, meaning they will be developed and produced with the help of local partners. Its sales are falling, but Volkswagen is not backing down yet.