Volkswagen: The electrified future is here

Jochem Heizmann, CEO of Volkswagen Group China. [Photo provided to China Daily]

Volkswagen Group China's sights are set firmly on new-energy vehicles as the nation's largest automaker looks to an electrified, connected future.

Volkswagen China presented an impressive lineup of plug-in hybrid and allelectric vehicles on Friday at the ongoing Auto Guangzhou 2015, and gave the promise of a more sustainable future for the nation through heavy investment in new energy technologies.

The German automaker's new GTE-badged plug-in hybrids and the all-electric e-Golf are taking center stage at the pavilion. These vehicles form the vanguard of the automaker's charge into NEVs. In line with this effort, Volkswagen's theme this year at Auto Guangzhou of "Connecting to China's Future" has piqued the public's curiosity.

Volkswagen Group China CEO Jochem Heizmann pledged at a media event ahead of the auto show that NEVs would play a crucial role in his company's China strategy in the near future and beyond.

The brand is investing heavily in developing both plug-in hybrid and all-electric battery vehicles, with Heizmann stating that "eco-friendly models and more efficient, sustainable production account for most of our current investment planning". The fruits of their investments are beginning to show.

Five years ago, few would have believed that China would be at the forefront of the world's e-mobility revolution given the galloping pace of growth in gasoline car sales. Now, with e-mobility included in the guideline of the 13th Five-Year Plan (2016-2020), this is precisely what appears to be happening as China stands at the edge of an automotive transformation. Auto industry regulators expect that by 2020 there will be several million NEVs on the roads. It is projected that China will become the largest market for NEVs in the world. Naturally, there is a huge interest among automakers and consumers alike.

However, the surge in momentum behind NEVs comes on the heels of a turbulent summer for the auto industry as a whole. Growth rates for the year were revised down, leading to speculation and discussion about where growth would come from in 2016 and 2017, and what the future holds for the Chinese auto market.

For Volkswagen, things seem to be looking up. The company announced a positive outlook for the end of the year and through into 2016, as well as expressing deep confidence in the Chinese auto market's long-term prospects.

The clear market leader in light passenger cars, Volkswagen bore its fair share of the market cool off in mid-2015 - a fact that only added to the surprise today in Guangzhou, not only at the marque's strong showing, but also at the brand's innovation in electric and hybrid drivetrains.

All-electric future plan

For those who ask how big a future Volkswagen foresees for NEVs, the answer is simply "enormous". Industry experts say sales of NEVs in China grew an incredible 130 percent year-on-year between January and October - a trend that will only accelerate in the coming year.