VW markets new electric brand for China to compete with BYD

VW markets new electric brand for China to compete with BYD

The VW logo stands on the brand tower at the Volkswagen main plant. Julian Stratenschulte/dpa

The VW logo stands on the brand tower at the Volkswagen main plant. Julian Stratenschulte/dpa

German carmaker Volkswagen is putting a new electric car range on the market in China. The vehicle under the brand name “ID. Unyx” is to hit showrooms this summer, a spokesman said on Wednesday as the new model was presented in Anhui in south-eastern China.

Four further models are to follow up to 2026, with VW seeking to profit from the booming Chinese market for electric cars, where Chinese maker BYD has had the upper hand.

“Electric models, like the new ID. Unyx are the key to winning over young, lifestyle-oriented target groups,” VW China brand head Stefan Mecha said. The new sub-brand is to be marketed at a higher level than the VW core brand and have its own dealer network with 40 display rooms in 20 cities.

The first ID. Unyx model is similar to the Cupra Tavascan, which will be also produced at the Anhui plant for export to Europe from the autumn. However, the ID. Unyx has a completely redesigned passenger compartment.

The Cupra Tavascan is the first and only VW model to be built in China and exported to Europe. It will not be on sale in China.

VW has struggled to respond to demand in China, where buyers are looking for more software and networking in their vehicles, including software linked to social media. There is also keen competition on price in the world’s largest car market.

VW surrendered its leading role on the Chinese market to BYD last year, which sells more electric cars that VW does across its entire range.

While VW is still ahead on combustion engines, it has failed thus far to crack the electric car market in China. Of the 1.345 million VW units sold in China in the first half, a little over 90,000 were electric.

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