The dynamic landscape of China’s electric vehicle market is about to get even more exciting. FAW-Volkswagen, a powerhouse joint venture, just announced plans to launch two new energy vehicles (NEVs) by 2027. These aren’t just any NEVs, though. They’re being developed from the ground up right in China, specifically for the Chinese market, with no intentions for export.
A Bold Move for Volkswagen in China
This strategic initiative highlights Volkswagen’s commitment to the world’s largest EV market. The two upcoming models will be built on the CMP platform and offer both pure electric and plug-in hybrid (PHEV) powertrain options. This move signals a deeper integration into the local industry, showcasing a recognition of the unique demands and rapid advancements within the Chinese automotive sector.
On June 4, the FAW-Volkswagen joint venture solidified its plans by signing a memorandum of understanding with the Tianjin Economic Development Zone Government. The agreement centers on jointly fostering the new energy vehicle industry in the region. The Tianjin assembly plant, boasting a substantial production capacity of 300,000 units, will be the birthplace of these new vehicles.
Unveiling the CMP Platform
Volkswagen’s investment of 2.3 billion yuan, or roughly 319 million USD, underscores the significance of this undertaking. The company revealed on June 4, 2025, that its Tianjin branch is set to begin production of these two NEVs by 2027.
At the heart of this new development is the CMP platform, Volkswagen’s latest architecture independently created by its Chinese division. This cutting-edge platform promises to accelerate product development by over 30%, a crucial factor in the fast-paced Chinese market. Engineered for both battery electric vehicles (BEVs) and PHEVs, the CMP platform will also integrate the China-exclusive CEA electronic and electrical architecture. This innovative system is designed to reduce control units by 30% and seamlessly integrate the cockpit, smart driving, and over-the-air (OTA) update functions.
The ID.Aura Concept: A Glimpse into the Future
While details on the two specific models remain somewhat under wraps, the first production vehicle based on the CMP platform is expected to be a mass-produced version of the ID.Aura concept car, which made its debut at the Shanghai Auto Show 2025 in April. Targeting young consumers, the ID.Aura concept boasts a minimalist design, featuring concealed door handles, a sleek roofline, a single taillight unit, and slender LED headlights. Its anticipated price range in the Chinese market is between 150,000 and 200,000 yuan, or about 20,820 to 27,760 USD.
This focus on localized development and production is a clear indicator of how traditional automotive giants are adapting to the rapidly evolving Chinese EV ecosystem. With brands like Xpeng and Leapmotor continuing to innovate and expand, the competition is fierce. Volkswagen’s proactive approach with its FAW-Volkswagen joint venture, creating tailor-made vehicles for the Chinese consumer, is a smart play in a market hungry for advanced and affordable electric mobility. It will be exciting to see these vehicles hit the roads and witness their impact on the competitive Chinese NEV landscape.
