VW’s Chinese subsidiary Jetta to develop EVs

The Jetta brand, VW’s brand for China and part of Volkswagen’s joint venture with FAW, wants to launch five new models by 2028, including four New Energy Vehicles. The first model is expected to launch in 2026, reportedly for a price equivalent to less than €12,000.

In China, Jetta is no longer the Golf-format sedan model, also sold in Europe for a long time, but a Volkswagen brand established in 2019, which is geared towards affordable vehicles that are visually distinct from Volkswagen models, but so far without electric drives.

In March, an electrification offensive was announced at Jetta, featuring 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.

Cooperation agreement

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 planned to be built in Chengdu, are not only intended for the Chinese market but will also be offered in other Asian markets. The electrified models and a high degree of vehicle connectivity are also expected to increase the success of the Jetta brand, which has been relatively modest to date.

As of the end of July, approximately 60,000 Jettas had been sold in China for the year to date. According to the new plans, once all the announced New Energy Vehicles are on the market, Jetta sales are expected to rise to between 250,000 and 300,000 units per year. At least that is what the German publication Manager Magazin reports, citing insiders.

As a subsidiary VW brand, Jetta has been present in the Chinese market since 2019 /Jetta

EV sales boost is the target

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 is expected to be presented at Auto China next April and will 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, aims to reduce costs by 40% and develop vehicles 30% faster. The corresponding VW models are also set to debut in 2026, but will cost around 4,000 euros more, according to Manager Magazin.

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