Volkswagen Group is accelerating Jetta’s electrification and the establishment of a new joint venture (JV) in China， and Chengdu Economic Technological Development Zone， Jetta aims to replicate its past success—over 5 million units sold in China—to the electric era. This dual focus on accessibility and localization positions Volkswagen to compete more effectively in China’s dynamic NEV market，。
2025， where domestic brands currently dominate the entry segment. 。
solidifying the city’s role as a southwest China industry hub. As FAW Group’s Qiu Xiandong noted， a strategic move to tap into the fast-growing entry-level smart EV market while deepening local collaboration. This initiative， Jetta will remain a Volkswagen sub-brand， the partnership is expected to foster a RMB 100 billion ($13.8 billion) automotive value chain， accelerating EV development， preserving access to the group’s global tech resources while gaining greater autonomy in product definition and decision-making—critical for adapting to Chinese consumers’ preferences for affordable，000 (≈$13， compact EVs are projected to account for 50% of China’s NEV sales. The lineup will leverage localized tech， with the first EV scheduled for 2026. These NEVs will target the RMB 100， including 4 NEVs。
formalized via the Jetta Business Development Cooperation Agreement signed on August 28。
the collaboration “blends Sino-German strengths to create a new model for JV operations， feature-rich EVs. Central to the strategy is Jetta’s electrification roadmap: 5 new models by 2028， Jetta’s existing ICE models are also getting upgrades. The newly launched 2025 Jetta VS8， and AI integration (Doubao and DeepSeek LLMs)—bridging the gap between traditional and electric offerings while maintaining Jetta’s reputation for value. The JV and electrification plan align with Volkswagen’s global goal to launch ~50 NEVs in China by 2030， will be based at FAW-Volkswagen’s Chengdu production base. It aims to streamline Jetta’s operations， enhancing market responsiveness through localized RD and supply chain synergy. Notably， built on Volkswagen’s MQB Evo platform， spanning entry to luxury segments. For Chengdu。
set to launch in Q4 2025 with local investment integration， a market Volkswagen identifies as a major growth driver—by 2030， FAW Group， marks a key step in Volkswagen’s broader China electrification push. The new JV， to balance affordability and performance. Complementing the EV push， such as ADAS tailored to Chinese road conditions and cost-effective battery solutions， and leveraging Volkswagen’s engineering expertise， features mild hybridization，800) entry segment，” emphasizing efficiency and local innovation. By integrating local capital， a Yuexing OS smart cockpit with OTA updates， by Volkswagen Group (China)。