SAIC, VW to co-develop NEVs at Chinese JV

Chinese carmaker SAIC Motor and its German partner Volkswagen are to co-develop three plug-in hybrids and two pure electric vehicle models in China, according deals the two inked on Thursday.

The first of the models is scheduled to hit the market in 2026, said their joint venture SAIC Volkswagen, which is celebrating its 40th anniversary this year.

"We are strongly pushing ahead our electrification strategy. The course is set," said Ralf Brandstätter, board member of Volkswagen AG for China.

"In a dynamic and competitive EV market in China, it is of great importance that we continue to strengthen our strategic partnership with SAIC and drive forward the electrification of SAIC Volkswagen's portfolio," said Brandstätter, who is also chairman and CEO of Volkswagen Group China.

The deals between the two came after an agreement SAIC inked in May with Audi, a Volkswagen subsidiary, to develop an advanced digitalized platform for Audi-branded vehicles, further cementing the two car group's decades-long cooperation.

Analysts said the deals are expected to enable SAIC Volkswagen to better compete in China's growing but increasingly competitive NEV market, and improve the attractiveness of its Volkswagen and Audi-branded models in the eyes of car buyers in China, the largest market for both marques in the world.