Volkswagen will expedite product introduction in China with more than 30 electric models by 2030 and 30 locally produced fuel-powered and plug-in hybrid models by 2027, aiming to stay as the No 1 international automaker in the world's largest auto market.

Despite the challenging market, the German auto giant delivered 3.24 million vehicles in 2023 in China, up 1.6 percent year-on-year.

Its electric vehicle deliveries reached 191,800 units, up 23.2 percent year-on-year. The ID.3, with more than 75,700 units delivered last year, is one of the best-selling models in China's EV segment.

The group said that it will consolidate its position in the fuel-powered market, transform the leadership into NEVs and leverage the profitable internal combustion engine business to finance investments in intelligent connected vehicles.

"With our 'in China, for China' strategy, we tailor our vehicles to the wishes of Chinese customers: intelligent, connected, automated," said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China.

This year, its joint venture specially for EVs — Volkswagen Anhui — will commence production of the first model and broaden the group's product portfolio.

Its premium brand, Audi, which sold 729,000 vehicles with a 13.5 percent increase in 2023, will start production of the Q6 e-tron SUV in the Audi FAW NEV Company's PPE plant in Changchun, Jilin province, later this year.

As of 2026, models from the Chinese EV startup Xpeng will broaden Volkswagen's product offering through a partnership.

At a media workshop on Thursday, He Xiaopeng, chairman and CEO of Xpeng, said that collaboration with Volkswagen is characterized by mutual trust and high efficiency.

The two sides had completed the feasibility study of the joint development project by the end of November and are about to complete the second phase, demonstrating highly efficient progress for a cross-company joint research and development team, He said.

To make use of local innovative strength and quickly respond to the needs of Chinese customers, the group established the Volkswagen China Technology Company in May in Hefei, Anhui province, which is the group's largest development center outside Germany and the only one focused exclusively on intelligent connected vehicle development.

The VCTC, commenced operation in January, can reduce the development time for new products and technologies by around 30 percent. It is developing the first China-specific electric platform, China Main Platform, which will serve as the foundation for additional e-models starting from 2026.

Achieving a development time of just 36 months, one-third shorter than the group's previous average, the platform will integrate China-specific solutions for the battery, electric drive and electric motors to ensure cost efficiency and swift market readiness.