WOLFSBURG/ANHUI (dpa-AFX) - Europe's largest carmaker Volkswagen is launching a new electric brand for China. Under the new sub-brand ID. Unyx sub-brand, the first car is to be launched on the market as early as this summer, a spokesman said at the world premiere of the first model in Anhui, where it will be produced. Four more are to follow by 2026. In doing so, VW aims to gain ground, particularly in the booming electric mobility sector in China. So far, local challengers such as BYD have set the tone here.

"Electric models like the new ID. Unyx are the key to winning over young, lifestyle-oriented target groups," said VW China brand boss Stefan Mecha. According to a spokesperson, the sub-brand will be positioned above the core VW brand and will also have its own dealer network with 40 showrooms in 20 cities.

Sister model of the Cupra Tavascan

The first model of the new brand largely corresponds to the Cupra Tavascan, which is produced in the same plant and is due to come to Europe in the fall. The ID. Unyx has a completely redesigned interior. The Cupra Tavascan is the first and only model in the Group to be built in China and exported to Europe. The Cupra is not offered in China itself.

So far, VW has found it difficult to appeal to Chinese tastes with its electric models. Buyers there are demanding more software and connectivity in their cars, including social media options. In addition, a price war has developed in the rapidly growing electric car market with low-cost manufacturers from the People's Republic.

BYD overtakes VW

In 2023, VW had to cede its position as market leader in the country, which it had held for decades, to local challenger BYD, which sold more cars with electric models alone than VW in total. While the Wolfsburg-based company is still ahead in the combustion engine segment, it only plays a minor role in the e-car segment. Of the 1.345 million vehicles of all Group brands delivered in China in the first half of the year, only a good 90,000 had an electric drive.

The Group therefore wants to increase development in China in future in order to better meet the tastes of customers there. Last year, VW had already entered into a cooperation with the Chinese car manufacturer Xpeng. Together with this partner, two mid-range electric cars are to be developed for China and launched on the market in 2026. Whether they will then also compete under the sub-brand ID. Unyx sub-brand was left open by VW when asked./fjo/DP/nas