Volkswagen is entering what executives describe as the "delivery year" of its China strategy in 2026, as the German automaker prepares to roll out a new wave of intelligent electrified models designed specifically for the world's largest auto market.

At a media preview held last week, the company showcased several upcoming vehicles, including the ID. UNYX 08 from Volkswagen Anhui and the ID. ERA 9X developed by SAIC Volkswagen.

The latter is the largest SUV ever introduced under the Volkswagen brand globally and also marks the company's first range-extended electric vehicle.

The preview comes as Volkswagen accelerates its "In China, for China" strategy — an approach aimed at deepening local development, integrating Chinese technology ecosystems and responding more quickly to shifting consumer preferences.

The company plans to introduce 13 new energy vehicles in China this year, expanding its portfolio across battery-electric, plug-in hybrid and range-extended technologies.

In an interview with China Daily following the event, Robert Cisek, CEO of Volkswagen Passenger Cars brand in China, said the company's immediate priority is turning strategy into tangible products.

"We have now entered the delivery phase," he said. "Over the past two years we have defined the strategy and worked on the development of new products. What matters now is delivering these vehicles and making sure customers appreciate them."

The newly previewed models reflect Volkswagen's effort to design vehicles specifically for Chinese customers.

"Everything depends on whether customers appreciate our products. That's why we've done extensive product reviews to readjust and refine our offering — in terms of design and functionality,"Cisek said.

According to Cisek, the company's upcoming lineup will focus on two major technology domains: intelligent driving and diversified powertrains.

Volkswagen's vehicles will offer multiple levels of advanced driver-assistance functions, including enhanced Level 2 capabilities.

China's rapid adoption of assisted driving features is influencing how the company develops vehicles for the market, he said.

Powertrain diversity is another key focus. Range-extended models will offer more than 1,000 kilometers of total range, while plug-in hybrid vehicles provide flexible options for different needs.

"For us, one key advantage is that we are able to offer the full range of powertrain flexibility — we can provide versatile plug-in hybrids, range-extended, and of course pure electric vehicles as well. This is how we cater to specific Chinese needs," Cisek said.

Inside the vehicles, Volkswagen is emphasizing digital experiences. Both models integrate smart displays, premium acoustics and interactive features supported by Chinese large language model-based assistants.

"Chinese customers increasingly view the vehicle as an extension of their living space. That means you need to offer more features and create a more inviting in-car experience than in many other parts of the world," Cisek said.

The ID. ERA 9X, for example, features a large panoramic display system designed to provide a more intuitive interface and immersive multimedia experience.

To strengthen development capabilities in China, Volkswagen has expanded its research footprint. Its largest research hub outside Germany — Volkswagen China Technology Company (VCTC) — now employs more than 3,000 engineers.

"In order to stay competitive in this market, we decided that we need a true 'In China, for China' setup. That means building our research and development competence here in China. For that reason, we established VCTC to develop end-to-end solutions, platforms, architectures and models specifically for the Chinese market," Cisek said.

Volkswagen is also collaborating with Chinese technology firms. The company has partnered with XPeng and established Carizon with Horizon Robotics to develop automotive system-on-chip technologies.

"We decided to build local partnerships, which help us understand the market better and accelerate innovation," Cisek said.

Cisek highlighted that innovations developed in China could also benefit other markets. "You can already see that this technology is also attractive for other markets," he said, noting that Volkswagen began exports from China in 2025.

Volkswagen operates through three major joint ventures in China, each targeting different customer groups. Despite their distinct positioning, Cisek emphasized that all vehicles adhere to the brand's core principles: safety, quality and reliability.

"Some elements are naturally subject to personal preference. What matters is that regardless of the technology inside the vehicle and the way we tailor the product, in the end it is still about driving. You should still be able to tell that this is a Volkswagen," he said.

For example, the ID. ERA series emphasizes a modern urban and business-oriented style, while the ID. UNYX lineup focuses on individuality and a dynamic design aimed at tech-savvy customers.

"This approach allows us to serve distinct customer groups while maintaining safety, reliability and quality standards across our joint ventures," Cisek said.

China's auto market remains fiercely competitive, particularly in the rapidly expanding new energy vehicle segment. Domestic brands currently account for about 70 percent of the passenger vehicle market, posing challenges for international manufacturers.

Cisek said cost management and supply-chain localization are critical. "In order to stay competitive, we decided that we need a true 'In China, for China' setup," he said. The company is seeking sustainable growth rather than relying on aggressive price cuts.

"Pricing must still deliver a compelling offer to customers while remaining competitive. That is what allows us to succeed and capture opportunities in the market,"Cisek said.

Volkswagen expects a major turning point around 2027, when vehicles based on the China Main Platform and the China Electrical Architecture will enter production and reach larger scale.

"Then, over the course of the following years, the number of models will increase, including our first SUVs using the CEA architecture. That is when we will really begin to see the scale effects and the broader technology transition," Cisek said.

Intensifying competition underscores the pace of innovation in China, from advanced sensing systems by Huawei to next-generation batteries and ultra-fast charging from BYD.

But Cisek embraces this environment: "We welcome competition — because it drives innovation forward. In the end, that benefits customers."

He added that Volkswagen is also investing in battery technology and charging infrastructure in collaboration with local partners, aiming to integrate seamlessly with China's growing ultra-fast charging network.