Volkswagen's Chinese division has reached a new level of independence, as the company has completed a massive expansion of its technology and innovation center in Hefey worth 3 billion euros, which for the first time allows for the full development of vehicles outside Germany, according to Automobilwoche.
Volkswagen China Technology Company (VCTC) currently has more than 100 state-of-the-art laboratories covering 100,000 square meters, employing 3,000 developers who can design, test, and introduce new platforms, batteries, powertrains, and on-premise software into the industry. As part of the "In China for China" strategy, VW aims to accelerate development cycles by about 30%, reducing lead times to about 24 months and reducing key project costs by up to 50%. CEO Oliver Bloom and head of China Ralf Brandstetter emphasize that these local capabilities are essential to remain competitive in a rapidly changing market where development is cheaper and consumer expectations are evolving rapidly.
VW plans to launch 30 new electric vehicles in China by 2030, building on the new China Electronic Architecture (CEA), which will debut in 2027, and a new core platform for China, which will appear next year. Although VW sees developments in China as a strategic asset for global markets in Asia, Africa, the Middle East and South America, this change reinforces concerns in Europe, where underutilized plants and high costs contrast sharply with Hefey's speed and efficiency.
