Hosted by China EV 100 and co-organized by Tsinghua University, China Society of Automotive Engineers, China Association of Automobile Manufacturers, China Automotive Technology & Research Center, and China Automotive Engineering Research Institute, the China EV 100 Forum (2023) opened in Beijing.
The forum has invited representatives from government departments, as well as automotive, energy, transportation, urban, and communication sectors, to have in-depth discussions on various topics such as the global automotive industry development trends, high-quality development paths for new energy vehicles, China’s intelligent connected vehicle development strategy, power battery supply chain trends, next-generation automotive consumption trends, collaborative development strategies for automotive and energy, new transportation energy security systems, commercial vehicle transformation directions, automotive aftermarket innovation paths, and automotive digitalization and smart manufacturing models.
At the 2023 China EV 100 Forum, Stefan Mecha mentioned the following points in his speech:
- China’s leading position in the development of new energy vehicles, with 1 in every 4 new vehicles sold being NEVs in 2022, and this ratio is expected to reach 1 in every 3 this year.
- Volkswagen Group’s position in China’s NEV market, with a 68% growth in the delivery volume of pure electric models in 2022 and a doubling of the ID. series vehicle delivery volume.
- Volkswagen’s nearly 40 years of cooperation with Chinese joint venture partners, delivering approximately 40 million vehicles.
- In terms of sustainable development, the Volkswagen Group will work with joint venture partners to achieve the goal of using renewable energy at all production sites in China by 2030. The group’s MEB factory in China has already achieved renewable energy use in 2021.
- Between 2023 and 2027, the Volkswagen Group will invest more than €180 billion in global markets, including China, with €15 billion earmarked for joint investment in electrified transportation with Chinese joint venture partners. By the end of 2030, the Volkswagen Group will have electrified the vast majority of its models in China.
- Strengthening local software and R&D capabilities, CARIAD in China, and collaborating with Horizon to enhance connectivity, autonomous driving, battery, and other responsibilities.
- Providing Chinese consumers with an electric travel experience through outstanding products and high-quality service experiences, and has already joined hands with StarCharge to provide convenient charging services to over 1.5 million Chinese consumers. By 2025, the number of charging terminals built in China will increase from the current 9,500 to 17,000.8. Recommended policy support: extend the exemption period for purchase tax on new energy vehicles until after 2023; strengthen charging infrastructure construction in China; enhance the stability of crucial materials and components’ supply, such as lithium and chips; strengthen intelligent and interconnected vehicle deployment.
The following is the original text of the speech:
Distinguished leaders, experts, colleagues from the industry, ladies and gentlemen, good morning!
My name is Meng Xian, from the Volkswagen Group. It is an honor to be invited to participate in this year’s China Electric Vehicle 100 Forum. I am also delighted to be able to engage in discussion on the future development of new energy vehicles with industry leaders. China’s leading role in the development of new energy vehicles is evident to us all.
August 2022 marked the beginning of my China journey. Since then, I have had the opportunity to visit cities such as Shanghai, Hefei, Changchun, Beijing, Haikou, and Guangzhou. Each city is distinctive, but they all have striking similarities:
Firstly, they are all full of vibrant energy, and I have observed the awe-inspiring speed of innovation in China; secondly, electric transportation has deeply entered people’s consciousness, and the supporting industries are becoming increasingly mature and complete; finally, Chinese consumers are all “tech-savvy,” and advanced interconnectivity and entertainment features are their basic requirements for products.
Over the years, I have visited more than 60 countries, but none compare to the development speed of China. Although the current market development still faces many challenges, China’s momentum in leading the electric transportation revolution cannot be stopped. Taking China’s automotive market in 2022 as an example, one out of every four new cars sold here is a new energy vehicle. This ratio is expected to reach one in every three by the end of the year!
Volkswagen has always been an important partner in China’s automotive industry development journey. As China enters a new era of electric transportation, we remain steadfast in our commitment to collaboratively build the future of new energy vehicle development in China.
At present, Volkswagen is accelerating its transformation towards electrification, intelligent, and interconnected mobility, while maintaining its leading position in the Chinese automotive market. In 2022, the overall delivery volume of pure electric vehicles in Volkswagen Group’s Chinese market grew by more than 68%, with the delivery volume of ID. series vehicles doubling. With the active encouragement of the positive trend towards electrification, we are confident in accelerating our transformation while maintaining our market-leading position.
Volkswagen’s deep connection with the Chinese automotive industry can be seen in the number “40.” Progressing hand in hand for nearly 40 years, Volkswagen and its Chinese joint venture partners have continuously promoted the development of China’s automotive industry and met the needs of Chinese consumers. This number also corresponds to the 40 million vehicles that we have delivered in China by 2022. This means that in the four decades Volkswagen has been in China, we have won the trust of over 40 million customers.In the new era of mobility, we will continue to uphold Volkswagen’s core values that have won the trust of Chinese consumers – excellent engineering design and high-quality products, moving towards the next milestone.
Of course, sales volume is not the only criterion for measuring our success. Achieving high-quality, green and sustainable development is our highly focused strategic direction. Under the guidance of the “goTOzero” strategy, Volkswagen is committed to achieving carbon neutrality by 2050.
This goal sets the standard for our commitment to sustainable development in China: the Volkswagen Group will join hands with joint venture partners to achieve the use of renewable energy in all production bases in China by 2030.
In line with this goal, we have already made progress: in 2021, the group’s MEB plant in China has achieved the use of renewable energy.
Looking ahead, Volkswagen will continue to be a loyal partner for Chinese consumers on their journey to electrification and embracing a sustainable green lifestyle.
Therefore, we need to discover more changes in electrification and sustainability throughout the value chain. China’s unstoppable development in electrification, intelligent connectivity, and green mobility is a path that Volkswagen Group China will resolutely move forward with. Despite the current market experiencing a short-term slowdown in demand, we remain confident in the continued recovery of the market.
At present, numerous competitive new automotive forces are continuously entering the market, which also encourages us to continue innovating and deepening reforms. The change in consumer demand is faster than the development of technology, which means we need to keep a keen eye on market trends.
In response to the challenges we face, we have developed a clear transformation roadmap.
Between 2023 and 2027, the group will invest more than 180 billion euros in the global market, including China. For the Chinese market, this move will strengthen Volkswagen Group’s strength and product competitiveness in the digital field in China. By 2024, we will invest 15 billion euros in electric mobility with our joint venture partners in China; by the end of 2030, Volkswagen Group will complete the electrification of most models in China.
In addition, we are guided by the strategy of “In China, For China” to strengthen our local software and R&D capabilities.
We will continue to enhance the connectivity and digitalization of our products, with regional R&D departments, including Volkswagen brand, Audi, CARIAD, and parts division, taking on more responsibilities in the fields of connectivity, autonomous driving, batteries, and more. Volkswagen Group’s software subsidiary CARIAD has now landed in China, aimed at enabling the group to develop software tailored to Chinese consumers quickly and efficiently. Furthermore, we have also partnered with Horizon Robotics, one of the world’s leading autonomous driving technology providers. To move forward at a true “China speed”, we will create a complete new energy ecosystem at our new energy vehicle center in Anhui.To achieve long-term and robust development, we must create outstanding electrified products for Chinese consumers and offer excellent service experiences. To this end, we have made significant progress:
- The Volkswagen ID. series and Audi e-tron series are driving the group’s strong momentum in electrification;
- Further expanding our lineup of pure electric models and launching the first pure electric sedan in China, the ID.7;
- Ensuring exceptional products deliver convenient, worry-free electric travel experiences for consumers;
- Initiating the construction of charging infrastructure with our charging joint venture partner, CAMS;
- To date, Volkswagen has provided convenient charging services for over 1.5 million Chinese consumers in collaboration with CAMS. By 2025, the number of charging terminals built in China will expand from the current 9,500 to 17,000;
For Volkswagen Group China and the overall Chinese automotive industry, more policy support will greatly benefit the entire sector’s development. Therefore, we propose:
- Extending the exemption period for purchase tax on new energy vehicles beyond 2023 and establishing a relatively stable policy framework;
- Strengthening the construction of charging infrastructure in China, such as increasing the number of charging wall boxes in residential areas;
- Enhancing the stability of key materials and component supplies, such as lithium and chips;
- Strengthening the layout of intelligent connected vehicles, which will be the general trend of the automotive industry in the future;
We are delighted to see that the Chinese market is ready to embrace challenges. As market participants, we need to collaborate closely with the Chinese and German governments and develop globally unified standards and policies for new energy vehicle technology. The joint efforts and sincere cooperation with government and industry stakeholders are prerequisites for achieving a win-win outcome, whether promoting economic growth or building a greener, more sustainable future.
Looking ahead, I believe 2023 will be a year full of opportunities. In this year, the effects of pandemic restrictions will further subside, and economic development will become a common goal. Volkswagen Group will, as always, support China’s further opening-up process and achieve greater development in 2023 alongside the industry.
Today, I would like to affirm that Volkswagen Group will unswervingly practice its solid commitment to the Chinese market. In the era of electric mobility, we will continue to increase investment, deepen the “In China, for China” strategic layout, and continuously meet the needs of Chinese consumers while actively contributing to the development of the industry, partners, and society as a whole.Thank you all!
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.