Volkswagen will suspend production of new electric vehicles in China due to weak demand

Anhui, the Chinese joint venture of the German automaker Volkswagen, does not plan to launch new electric vehicle models for the local market in 2027 and 2028. The reason for this decision was the demand for the ID. UNYX lineup, which turned out to be significantly lower than the company’s expectations.

According to sources familiar with the matter, Volkswagen Anhui’s management had expected that the existing lineup of four vehicles would be sufficient to establish a foothold in the market and ensure steady sales through 2028. However, the UNYX sub-brand, launched in July 2024, failed to attract a young urban audience at a time when local competitors (notably BYD) are updating their model lineups every month. 

The ID. UNYX 08, a joint venture with Chinese manufacturer Xpeng that was unveiled in April 2026, is also posting sales significantly below targets, and the launch of another crossover planned for 2028 has been put on hold for now.

From January through September, the company sold only 11,360 UNYX-series vehicles out of an annual production target of 33,000 units. At the same time, the company’s internal plans for next year include an ambitious goal of selling 128,000 vehicles of this brand. 

Overall, Volkswagen Group’s vehicle sales in China fell by 30% over the first nine months of this year (to just over 1.3 million vehicles), while the country’s overall auto market declined by nearly 22%.

The company’s multibillion-yuan plant in Anhui Province, with a capacity of up to 350,000 vehicles per year, is currently operating well below its capacity (in addition to the UNYX, the plant also assembles the Cupra Tavascan for export—about 33,000 units per year). 

The plant has been in operation for nine years and is 75% owned by Volkswagen (the remainder is held by the Chinese company JAC), but it remains unprofitable to this day. According to the group’s CFO, Arno Antlitz, the joint venture is not expected to break even until 2030.

Volkswagen China stated that it is focused on optimizing its dealer network and plans to introduce up to 30 new electrified models in China by 2029, while simultaneously updating the existing ID. UNYX models. At the same time, the company cited October sales of “new energy vehicles” (electric cars and hybrids)—which more than quadrupled to a record 28,000 units per month—as a positive sign.

Volkswagen announced the electric ID. Tiguan to replace the ID.4 — Motor1.

Volkswagen is preparing to recall thousands of electric vehicles due to battery issues — Electrek.

Volkswagen posted a loss of 5.82 billion euros in the third quarter — Der Spiegel.