FW(SH:600742) Zhong Guo Jin Rong Xin Xi Wang·2025-08-29 15:23Core Insights - Volkswagen Group (China) has signed a cooperation agreement with China FAW and Chengdu Economic and Technological Development Zone to establish a new company for the Jetta brand, aiming to launch four entry-level electric vehicles by 2028 [1][3][4] Group 1: Electric Vehicle Strategy - The new Jetta brand will focus on the entry-level electric vehicle market, which is expected to grow significantly, with compact models projected to capture about 50% of the electric vehicle market by 2030 [3][4] - The first model is planned for launch in 2026, featuring electric and digital functionalities tailored for the entry-level market, along with advanced driver-assistance systems (ADAS) [4][5] Group 2: Market Positioning - Jetta has a strong legacy in China, having served over 5 million users, and aims to leverage this brand trust to transition into the electric vehicle era [3][6] - The strategy aligns with the growing consumer demand for high-quality, cost-effective, and intelligent mobility solutions in China [3][5] Group 3: Operational Framework - The new Jetta company will be based in Chengdu, integrating existing resources and local investments to enhance operational efficiency and market responsiveness [6][7] - The collaboration aims to create a billion-level industrial value chain by 2030, solidifying Jetta's position in the automotive ecosystem of Sichuan Province and Southwest China [6][7] Group 4: Broader Implications - This initiative is part of Volkswagen Group's broader strategy to introduce approximately 50 new energy vehicles in China by 2030, including 30 fully electric models [5][6] - The partnership reflects a commitment to localize operations and enhance technological capabilities, contributing to the high-quality transformation of the automotive industry in the region [7]