VW plans to create a sub-brand of electric vehicles in China

Volkswagen Groupplans to launch a new electric vehicle sub-brand in China to help the automaker reverse its declining market share in the country. The sub-brand will be launched with all-electric SUV Cupra Tavascan, sister model VW ID.5 and Skoda Enyaq Coupe iV. Its models will be targeted at new Volkswagenrivals in China such as Nio and BYD.

Tavascan will not sell as a Cupramodel in  ;China. Instead, the coupe-style midsize SUV will be the first sub-brand model positioned as a lifestyle brand that appeals to young buyers just as much as Cuprain Europe. VW is not launching Cuprabrand in China for practical reasons, said a senior brand manager.

«It's too expensive to start a brand new brand. We won do    — the source said.

The Jetta sub-brand, which was launched in China as an entry-level marque in 2019, is not in high demand. The Skodabrand was also not successful and will probably be withdrawn from the Chinese market. Both brands have a market share of less than 1 percent.

The sub-brand will be headquartered in Anhui, where Tavascan will be produced in a newly opened plant. Production of the Tavascanwill begin in December. The SUV will be exported to Europe. Cupraplans to sell 70,000 Chinese Tavascan electric SUVs.