A signing ceremony is held between Volkswagen Group and FAW in Wolfsburg, Germany on March 17, 2025. Photo: Courtesy of Volkswagen Group
German auto makers Volkswagen (VW) and BMW on Monday announced major cooperation plans with Chinese companies, in a strong sign of the resilience and potential of China-EU cooperation in the automotive industry.
The joint venture of VW and Chinese automaker FAW Group said on Monday that it will launch 11 new Volkswagen and Jetta branded models tailored for the Chinese market from 2026.
The new models, as part of a deal signed in Wolfsburg, Germany between FAW and VW, comprise six EVs, two plug-in hybrids, two extended-rangers and one gasoline-powered vehicle, according to a press release VW sent to the Global Times.
"Our enduring partnership with FAW is a strong pillar of our success in China," Ralf Brandstätter, member of the board of Volkswagen AG responsible for China, and chairman and CEO of Volkswagen Group China, said in the press release, adding that the move aligns with its strategy of "In China, for China."
Also on Monday, BMW announced a partnership with Huawei to develop an in-car digital ecosystem in China based on the technology company's Harmony operating system.
"Volkswagen and BMW's latest moves underscore the importance they attach to the vast Chinese market as well as cooperation with Chinese firms," Zhang Xiang, director of the Digital Automotive International Cooperation Research Center of the World Digital Economy Forum, told the Global Times on Monday.
The development of China's EV sector helps promote industry advancement and cost reduction, and ultimately improves the overall trajectory of the industry, and it is the general trend for Chinese and European automotive industry enterprises to conduct win-win cooperation, Zhang said.
In addition, Hesai Technology, Chinese tech firm engaged in lidar technology for automotive mobility and robotics applications, announced on March 10 a new exclusive design win with a leading European original equipment manufacturer (OEM).
Hesai will provide advanced ultra-long-range automotive lidars for the OEM's upcoming platform, including both internal combustion engine and EV models. This multi-year program will last into the next decade, making it the largest global program for the automotive lidar industry, it said.
The growing cooperation also comes amid a dispute between China and the EU over the latter's so-called anti-subsidy tariffs against Chinese EVs. However, even as EU tariffs on China-made EVs reduced sales of some brands, China in February again led purchases of EVs, Reuters reported on March 12, citing London-based research firm Rho Motion.
"Auto industries in China and Europe have solid foundations and great potential for cooperation. China welcomes European car manufacturers to increase investments and deepen their presence in the Chinese market," Chinese Commerce Minister Wang Wentao said during a video call with Ola Kallenius, president of the European Automobile Manufacturers' Association and chairman of the board of management of Mercedes-Benz Group AG, on February 14.
Wang said that a proper settlement of the EU's anti-subsidy case against Chinese EVs aligns with the interests of both China and Europe, as well as the broader expectations of the industry, according to a statement on the website of the Ministry of Commerce.
In recent years, Chinese automobile companies have also expanded their footholds in Europe. For example, In Spain, Chery has teamed up with Ebro to develop EVs, while BYD is manufacturing cars in Hungary, according to Xinhua.
By jointly developing a complete and massive industrial and supply chain for new-energy vehicles, Chinese and European enterprises will contribute to the sustainable development of low-carbon green economies on both sides and the global automotive industry's transformation and upgrading, Zhang said.
