Jetta Begins Electrification Transition, To Launch Four Entry-Level New Energy Models by 2028

On August 28, on the eve of the opening of the Chengdu Auto Show, Volkswagen Group China, China FAW, and the Management Committee of Chengdu Economic and Technological Development Zone signed the "Jetta Business Development Cooperation Agreement." According to the agreement, by 2028, the Jetta brand will launch four new energy vehicles targeting the entry-level market, equipped with highly competitive technical solutions tailored for this segment.

Source: Volkswagen Group China

Launch four entry-level new energy vehicle models

Analysis indicates that by 2030, compact cars are expected to account for about half of the new energy vehicle market, with entry-level models priced around 100,000 yuan becoming a key growth driver. To seize this trend and meet Chinese consumers' demand for high-quality, cost-effective intelligent mobility, the Jetta brand will launch four new energy vehicle models before 2028.

The first model is planned to be launched in 2026, equipped with highly competitive electrification, digitalization, and advanced driver-assistance system (ADAS) features aimed at the entry-level market, while maintaining strong price competitiveness.

Ralf Brandstätter, Member of the Board of Management of Volkswagen AG responsible for China, Chairman and CEO of Volkswagen Group China, stated: "Through the electrification transformation of the Jetta brand, the Group will accelerate its layout in the fast-growing entry-level new energy vehicle market, serving a broader customer base. In this way, the Group will also achieve comprehensive coverage of mainstream segments in the new energy vehicle market."

Dr. Robert Cisek, CEO of Volkswagen Passenger Cars Brand China, pointed out: “Making innovative technologies accessible to all users has always been a core principle of Volkswagen. As Jetta embarks on a new chapter, we will integrate locally developed platform technologies, advanced ADAS features, and the technological innovation capabilities of our joint ventures. Jetta’s new energy vehicles will perfectly combine intelligent solutions with Volkswagen’s consistent commitment to high quality, providing the rapidly developing entry-level car market in China with premium product choices that offer performance, reliability, and value.”

With the accelerated electrification transformation of China's automobile market, Volkswagen Group is comprehensively advancing its strategic layout, aiming to achieve a leading position in the new energy vehicle market. According to the plan, by 2030, Volkswagen Group intends to launch approximately 50 new energy vehicle models in China, including about 30 pure electric models.

Promoting the electrification transformation of its Jetta sub-brand will become an important part of Volkswagen Group’s new energy product offensive in China. Volkswagen Group can not only seize the booming growth opportunities in China’s entry-level new energy vehicle market, but also build an electrified model lineup ranging from entry-level products to luxury flagships.

At the same time, leveraging its highly competitive products and China's advantages in manufacturing, the Jetta brand plans to expand into overseas markets starting with Central Asia.

Deeply Cultivate Local Markets to Drive a Trillion-Yuan Industry Chain

In addition, to better promote the electrification transformation of the Jetta sub-brand, the three signing parties will establish a new Jetta brand company to comprehensively integrate Jetta's existing resources and introduce local investment, jointly developing Jetta into a leading enterprise in Sichuan's automotive industry.

As a major automotive hub in Southwest China, Chengdu is the city with the highest number of vehicles in the country. It boasts a strong new energy vehicle industry cluster and has become one of the significant forces driving the electrification transformation of China's automotive industry.

Based on its long-term strategic presence at the Chengdu manufacturing base, Jetta will establish a new brand company to fully integrate existing resources and introduce local investment. This will further leverage regional industrial synergy and accelerate the brand’s market responsiveness.

Under this new structure, Jetta will continue to operate as a sub-brand under Volkswagen, while maximizing synergies with the Volkswagen Group and FAW-Volkswagen.

Bernd pointed out that this deepened cooperation demonstrates Volkswagen Group's determination to continue its deep cultivation of the Chinese market and to achieve mutual benefit and win-win results with local partners such as China FAW and Chengdu.

Qiu Xiandong, Secretary of the Party Committee and Chairman of China FAW, stated: "This signing is a vivid practice of China FAW actively responding to the national policy of high-level opening-up, deeply implementing the 'Belt and Road' initiative and the Western Development Strategy. FAW-Volkswagen will fully integrate the advantages of both China and Germany, enhance localization operational efficiency, strengthen self-research and self-innovation capabilities, create a new high ground for joint venture technology, inject new momentum into the high-quality transformation and development of the Sichuan automotive industry, and provide Jetta brand with new energy for 'deepening roots locally and expanding overseas'."

According to the plan, by 2030, the new Jetta company aims to create a trillion-yuan industrial value chain encompassing research, production, supply, and sales. This will further deepen the integration of the Jetta brand into the automotive industry ecosystem in Sichuan Province and the Southwest region, solidifying its position as a leading enterprise in the Sichuan automotive industry.