Key facts
- Volkswagen Anhui has no new models planned for 2027 or 2028, two people with knowledge said.
- The venture sold 11,360 UNYX series vehicles over January-September, per consultancy ThinkerCar.
- An internal document dated late October showed the venture aims to build 33,000 UNYX cars in 2026.
- Volkswagen set an "ambitious" plan to sell 128,000 UNYX cars in 2027, the internal document showed.
- The Anhui plant is operating far below annual capacity of up to 350,000 vehicles, two people said.
- Volkswagen China said it is focused on "ramping up and optimising" the Anhui dealer network.
Volkswagen's electric-vehicle joint venture in China, Volkswagen Anhui, has not planned any new models for 2027 or 2028, two people with knowledge of the situation told Reuters, after the venture bet on far greater demand for its ID. UNYX series than materialized.
Without new models, the money-losing venture is left with a four-car line-up that has not caught on with the young, urban consumers it targeted when it launched the UNYX marque in July 2024. One of the people said management believed the line-up was sufficient to establish the brand and drive sales through 2028. The venture also considered a crossover utility vehicle for 2028, but that is on hold, the person said.
Sales have fallen short. Volkswagen Anhui partnered with Chinese EV peer Xpeng on the ID. UNYX 08 SUV, but sales since its April launch are far below target, Reuters reported last month. The venture sold 11,360 UNYX series vehicles over January-September, according to consultancy ThinkerCar.
An internal document dated late October and reviewed by Reuters showed the venture aims to build 33,000 UNYX series cars in 2026 and that production volume was "constantly rising." The document also showed Volkswagen set what it called an "ambitious" plan to sell 128,000 UNYX cars in 2027. Volkswagen China declined to comment on targets.
In a statement to Reuters, Volkswagen China said it was focused on "ramping up and optimising" its Anhui venture's dealer network to reach more customers and grow sustainably. It declined to comment on questions about product strategy. It also said the venture is "in the middle of a product offensive, with four models on the market and a pipeline that continues beyond this year," and that Volkswagen will introduce 30 NEV models in China through 2029, including from Volkswagen Anhui, which will refresh ID. UNYX models.
The plant in Anhui, eastern China, is operating far below annual capacity of up to 350,000 vehicles, two people with knowledge of the matter said. It also builds Cupra Tavascan SUVs for export, with plans for about 33,000 this year, the internal document showed.
Volkswagen Anhui is a nine-year-old venture with JAC that is 75% owned by Volkswagen and has yet to turn a profit. It is set to break even by 2030, finance chief Arno Antlitz said at a quarterly earnings presentation. Volkswagen has cited weak Chinese performance as a reason behind its largest quarterly loss in over a decade.
China's passenger car market is shrinking: sales are set to fall 20% in 2026 from 2025, CPCA data showed. Volkswagen sold more than 1.3 million vehicles in China over January-September, a 30% fall from a year earlier against a market decline of almost 22%, CPCA data showed. Volkswagen said on Wednesday it sold a record 28,000 new energy vehicles in China in October, more than four times the prior year.