SAIC Motor, Volkswagen Group extend joint venture agreement to 2040

Shanghai (Gasgoo)- On November 26, marking the 40th anniversary of SAIC Volkswagen, SAIC Motor and Volkswagen Group signed an agreement in Shanghai to extend their joint venture until 2040, reaffirming their long-term partnership.

SAIC Volkswagen, established in 1984, was China's first passenger car joint venture, formalized through a partnership agreement signed in Beijing's Great Hall of the People. The agreement was previously renewed in April 2002, eight years ahead of schedule. This latest early renewal underscores both sides' confidence in the joint venture's achievements and the future of China's automotive industry and economy.

Creating products tailored for Chinese market

In response to the evolving automotive industry, the joint venture will leverage shared resources to develop a range of new models tailored to the Chinese market, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). By 2030, SAIC Volkswagen plans to introduce 18 new models, 15 of which will be specifically designed for China.

In the internal combustion engine-powered vehicle segment, SAIC Volkswagen is focusing on vehicle intelligence. Recent releases such as the Tiguan L Pro and the Passat Pro have debuted under the "Pro" family banner, with the upgraded Teramont Pro set for launch in early 2025. 

In the new energy vehicle (NEV) sector, the joint venture is intensifying its product update efforts with BEV, PHEV, and range-extended electric vehicle (REEV) models. The fresh AUDI brand's first premium smart BEV model is scheduled to hit the market in 2025. Starting in 2026, two compact BEVs developed on the China-specific CMP platform, alongside three PHEV and two REEV models, will expand SAIC Volkswagen's NEV lineup.

Upgrading industrial layout

Aligned with its new strategic direction, SAIC Volkswagen is recalibrating its production capacity to reduce reliance on internal combustion engines and transition toward smart, connected NEV manufacturing.

The Shanghai Anting production base, the joint venture's birthplace and core facility, has undergone significant upgrades since 2015. It is now evolving into three strategic hubs: an electrification production center, an R&D and innovation center, and an intelligent manufacturing center. This year, SAIC Volkswagen has signed several agreements with Anting Town's government and related partners to accelerate its transformation, aiming to build a comprehensive smart EV ecosystem. Other production bases are also being optimized to adapt to market changes and strengthen collaboration across the supply chain.

Advancing "Zero-Carbon Roadmap"

As part of its commitment to sustainability, SAIC Volkswagen upgraded its CSR strategy to the ESG Growth Strategy in 2023. Focusing on environment, society, and governance, the company established six strategic pillars to guide sustainable development. By driving technological innovation and applying intelligent technologies, SAIC Volkswagen continues to develop "zero environmental impact factories" with a goal to reduce CO₂ emissions by 25% by 2030 compared to the level in 2018.