VW to launch youth-focused EV brand for China

BEIJING — Volkswagen has introduced a new electric vehicle subbrand for China and unveiled a concept previewing a new look designed for Chinese customers as part of a reboot aimed at regaining share in the world’s largest auto market. 

The concept, called the ID Code, previews a “completely new SUV generation” for China, VW said in a statement before the low-slung crossover's unveiling at an event Wednesday on the eve of the Beijing auto show, which opens Thursday. The car is a “glimpse of the future of Volkswagen in China,” VW brand CEO Thomas Schaefer said in the statement. “The ID Code is specifically geared toward the needs and wishes of our Chinese customers.” 

The newly launched EV subbrand, the ID UX, is “designed to appeal to younger customers in particular,” the company said. The first ID UX car will be the Unyx later this year, VW said, without offering further details. It will feature a “progressive” exterior design and a “driver-centric” interior with a new display and touchscreen interface meant to appeal to younger buyers.

VW is on a mission to win back market share in China after the domestic brand BYD overtook it as the nation’s top automaker. VW said it will take until 2026 to reverse its slide in the country. On Wednesday, the group told investors it had set a target of 4 million sales by 2030, with operating profit of €3 billion ($3.2 billion) and a top three position in sales in the market.

Under CEO Oliver Blume, VW Group has put in place new partnerships in China, including teaming up with local EV maker Xpeng for full-electric models. 

Volkswagen will build four models in the electric entry-level segment on a newly developed architecture called the China Main Platform starting in 2026, the company said. The architecture is being developed by Volkswagen China Technology Company together with joint venture SAIC Volkswagen and FAW Volkswagen, VW said on April 17. The new company aims to cut development time by 30 percent, VW said Wednesday.

Xpeng has said it and VW would develop a platform called the China Electrical Architecture for locally developed VW brand EVs from 2026 to provide a cost-effective software-defined experience. The two partners have a goal to cut costs by 40 percent for the China-developed platform compared with VW's German-developed MEB architecture.

VW said it will also launch 12 new internal combustion engine models and six plug-in hybrids by 2030. The plug-in hybrids will have an electric range of up to 100 kilometers (62 miles).

The ID Code concept was presented as the face of the automaker’s future in China, with interactive lighting, an “avatar” assistant and Level 4 autonomous capability. 

The smooth, uncluttered look of the coupe-styled car is “both fast and futuristic,” VW said. The vehicle is “extremely aerodynamic,” with almost flat roof rails. A roof spoiler extends over the rear window with a gap underneath to allow air to flow under, again helping maintain the smooth shape.  

At the front, a narrow, horizontal 3D light strip dubbed the Light Cloud communicates with the car’s surroundings, showing, for example, when the vehicle is in autonomous mode. The bumper below also acts as an interactive screen, displaying information such as a weather forecast. When the display is not active, the bumper appears to be painted body color. 

As the driver approaches the vehicle, semitransparent displays on the side show an artifical intelligence-assisted avatar that offers a greeting and information. The avatar also appears inside, acting as “the perfect co-driver.” 

The ID Code cabin is designed to be a “mobile living space.” VW’s approach to smart interactive features is a response to Chinese competitors such as BYD, Geely and GAC that have put much of their interior focus on screens and connectivity.