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Author | Chai Xuchen
Editor | Zhou Zhiyu
After being disrupted by new forces a few years ago, the &#34;old money&#34; has finally begun to respond to the &#34;new waves.&#34;
On March 13, the first model jointly developed by Volkswagen and XPeng—the ID.08—rolled off the production line at Volkswagen's Anhui factory. This is a key move for the German automotive giant to break through in China.
To compete with domestic brands, Volkswagen, after its partnership with XPeng, first maximized efficiency.
Volkswagen China told Wall Street Insights that &#34;the ID.08 project took just over 900 days from the signing of the technical cooperation agreement to mass production and delivery, without sacrificing quality.&#34;
In the past, the development cycle for a new model in the Volkswagen system typically took four to five years.
Previously, Volkswagen adopted a &#34;global platform + local manufacturing&#34; model in China: the platform was developed in Germany, and the technical route was determined by headquarters, with China primarily taking on production and market roles.
However, in the era of smart electric vehicles, the market in China is changing too quickly, while the R&amp;D systems of multinational automakers are too slow. Chinese consumers are rapidly shifting to electric vehicles, and local brands are capturing the market with faster product iterations and stronger intelligent experiences.
In the past few years, although the ID. series launched by Volkswagen has had decent sales, it has never truly formed a market blockbuster. On one hand, the product definitions are closer to the European market; on the other hand, the intelligent experience has a significant gap compared to Chinese brands.
Currently, about 50 million users in China are driving vehicles under the Volkswagen Group, which is a huge asset. Volkswagen is well aware that if it continues to use the old model, it is likely to lose its most important market in China.
After reflecting on the pain, there is a growing consensus within Volkswagen: the Chinese market is no longer just a &#34;sales location for global models,&#34; but a source of technology and products.
Therefore, Volkswagen has proposed a new rhythm: to develop Chinese models at Chinese speed and begin a large-scale reconstruction of its system in China—establishing Volkswagen China Technology Company (VCTC), strengthening CARIAD China's software capabilities, and proposing a new strategy of &#34;In China, for China.&#34;
The collaboration with XPeng is the most important step in this strategy. It is understood that the ID.08 whole vehicle project is led by the Volkswagen China team for product definition and quality verification, while integrating XPeng's technological capabilities in intelligent driving and electronic architecture.
The joint development between the two parties is not handled case by case but is prepared to lock in advantages and then output in bulk to the Chinese market.
Subsequent new vehicles will switch to the CEA architecture jointly developed by Volkswagen and XPeng. This architecture is specifically designed for the Chinese market, which can reduce system complexity, improve development efficiency, and lower costs, while also incorporating technologies such as Horizon's intelligent driving and 800V fast charging to address the shortcomings in intelligence.
After establishing the platform, the next step is to intensively roll out new models.
According to Volkswagen's plan, in just 2026, the group will launch about 20 locally developed new energy models in China. Volkswagen China Chairman Guo Beiride stated that this year will accelerate the rollout of electric vehicles, &#34;with an average of a new electric vehicle model launched every two weeks.&#34;
In 2026, Volkswagen Anhui plans to launch three all-new models and one facelifted model, covering different market segments. The Zhizhong 08, which will debut in the first quarter and be launched in early second quarter, is positioned as a B-class pure electric SUV targeting the high-end market; in the second quarter, the pure electric sedan Zhizhong 07 and the 2026 Zhizhong 06 are planned to be launched together, completing the mainstream market layout; in the fourth quarter, a B-class pure electric sedan will be introduced to further supplement the product matrix. Executives have stated that the pricing of the new vehicles will have significant price advantages.
This indicates that Volkswagen is striving to make itself more like new forces in the industry. More actions are proving this point.
Recently, it has been reported that Volkswagen Anhui's dealer training for the Zhizhong 08 concluded at the end of December last year. Currently, over a hundred outlets nationwide have transitioned to regular training by region, involving subsequent retraining, transfer training, and specialized training, which will continue until the product is officially launched.
Typically, traditional car manufacturers conduct large-scale training for terminal dealers 1-2 months in advance, while new forces do so 3-4 weeks before the new vehicle launch. Volkswagen's expectations for the new vehicle are evident. Sources close to Volkswagen revealed to Wall Street Journal that Volkswagen Anhui has defined 2026 as the &#34;Year of Advancement,&#34; planning to launch breakthrough strategies around products, channels, energy replenishment, and services.
This represents a new product system: centered on the China R&amp;D center, supplemented by local partners for technology, defining, developing, and validating in China, and then quickly pushing to market.
The key to achieving a breakthrough lies in whether this collaboration can truly change Volkswagen's competitive position in China. The answer depends on two factors.
First, is speed. If the Zhizhong 08 can validate the joint development model and allow Volkswagen's subsequent models to continue to be launched at Chinese speed, then Volkswagen will regain its product rhythm; second, whether organizational changes are sustained.
Currently, it appears that Volkswagen is gradually decentralizing power: establishing R&amp;D centers in China, localizing software teams, and developing electronic and electrical architectures locally. These changes point to a trend—Chinese teams are becoming important nodes in Volkswagen's global system.
If this path can be successfully navigated, Volkswagen may be able to complete a turnaround in the Chinese market

XPEV

VWAGY

VOW3

- On March 13, Volkswagen and Xpeng Motors launched their jointly developed vehicle, the Yu Zhong 08, marking a significant step for Volkswagen in the Chinese market.  
- Volkswagen has shifted its strategy, aiming for rapid development of electric vehicles tailored to local consumer needs, reducing the typical development timeline from several years to approximately 900 days.  
- The company plans to introduce about 20 new electric models in China by 2026, emphasizing a localized approach in response to competitive pressures and changing market dynamics.

Joining hands with XPeng, Volkswagen launches a major counterattack