<div id="readability-page-1"><div>HEFEI, China, Feb 5 (Reuters) - Volkswagen plans by 2030 to build most of the vehicles it offers in China on its new electronic architecture platform developed with EV maker Xpeng, the company said. The move is part of its efforts to win back the world's largest auto market. The architecture enables it to develop cars up to 30% faster and 40% cheaper when compared with using the German-developed MEB platform, thanks to centralised control units and increased in-house component production, company officials said. The company's goal is to build &#34;most of its cars&#34; in China on the software-driven new architecture called China Electronic Architecture (CEA) by 2030, said Liu Ran, a spokesperson for Volkswagen Group China Technology, during a tour of a sprawling manufacturing hub in Hefei, eastern China. The company has faced stiff competition in China, losing its top position to local rivals like BYD and Geely, which have in recent years rolled out new models - with smart features - at a far faster pace. In 2024, Volkswagen was overtaken by BYD and last year, it slipped to third place with a 17.4% drop in fourth-quarter sales. Employees at the Hefei hub, which includes a CEA lab that employs about 850 engineers - mostly Chinese - said they had been given autonomy to make decisions as part of a shift and expressed hope that Volkswagen's reputation in China for quality assurance and reliability could give it an edge. &#34;We have completely optimised our system to accelerate and deliver according to Chinese speed and also according to Chinese customer wishes,&#34; said Finn Cemmasson, who leads a team of those working on the validation of the architecture's integration with in-vehicle hardware. Volkswagen has started production of its first China-built vehicle, the electric SUV called &#34;ID. UNYX 07&#34; on the CEA at the end of last year and plans to produce four more models this year, Volkswagen said. Next year, it will add about 10 more models on the architecture, with some combustion-engine cars, it said. Volkswagen's collaboration with China's Xpeng on the architecture ended last year, with development now handled by Volkswagen, Cemmasson said. (Reporting by Ju-min Park; Editing by Thomas Derpinghaus)By Ju-min Park</div></div>

Volkswagen plans to produce most of its vehicles in China using a new electronic architecture platform, the China Electronic Architecture (CEA), by 2030. This initiative aims to enhance competitiveness in the Chinese market, where it has lost ground to local rivals like BYD and Geely. The CEA allows for faster and cheaper production, with Volkswagen already starting to manufacture the electric SUV "ID. UNYX 07" and planning to introduce more models this year. The company emphasizes optimizing its system to meet Chinese market demands and customer preferences.

- Volkswagen aims to build most of its vehicles in China by 2030 using its new electronic architecture, the China Electronic Architecture (CEA), developed with Xpeng.  
- This shift intends to recover its position in the competitive Chinese market, enabling vehicle production that is 30% faster and 40% cheaper than the previous MEB platform.  
- Volkswagen has started production of its first model, the ID. UNYX 07, and plans to introduce several more models by next year, while previously partnering with Xpeng has now ended.

marketscreener

Hwabao WP CSI Intelligent Electric Vehicle ETF

Volkswagen

Hua Xia CSI New Energy Vehicles ETF

Volkswagen AG

GEELY AUTO

Volkswagen AG Pref

GEELY AUTOMOBILE HOLDINGS LIMITED SPON ADS EACH REP 20 ORD

Guotai CSI Hong Kong Connect Automobile Industry Thematic ETF

Global X Autonomous & Electric V

ChinaAMC CSI Hong Kong Connect Automobile Industry Thematic ETF

Ping An CSI New Energy Vehicles Industry ETF

Geely Auto

BYD COMPANY

BYD Company Limited

BYD Company

Volkswagen aims to make majority of its cars in China on new architecture by 2030