Vehicle Market China ID Unyx: VW has understood two fundamental things

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Volkswagen is fighting hard for the Chinese market. The reactions in China to the new VW brand "ID. UNYX".

Last week, Volkswagen (VW) surprised with a new brand: "ID. UNYX" is supposed to regain market share in China. VW is fighting hard for the Chinese market. This fighting spirit is reflected even more clearly in the appearance of its new e-car "ID. UNYX 01" than in the many headlines about billion-dollar investments or "In China for China" strategies.

The new car, which belongs to the compact SUV category, is evidence of his company's "local development approach" in China, aiming to appeal to "young and trend-setting customer groups", writes VW's China CEO, Ralf Brandstätter, about the official launch of the model on July 17th on his LinkedIn channel.

ID Unyx: Developed at the Hefei location

The new VW brand "ID. UNYX", which is currently making its debut with the "01", is the first product conceived in the automaker's new research and development center in Hefei in Anhui province. It is intended to slow down or ideally reverse VW's shrinking market share in the highly competitive Chinese market.

It will be built in the modern e-car factory at the same location, at "Volkswagen Anhui", the third and majority German-owned joint venture of the VW Group in China. Here, a team of engineers and product developers is trying to prepare the venerable old VW name for the future of e-mobility, which currently belongs to local brands such as BYD, Nio or Xiaomi in the eyes of many young Chinese.

Timely restart?

So this is a bit more than a regular product launch for VW. Somewhat pathetically, but not inaccurately, one could say that the traditional German manufacturer is fighting for its future in the Chinese market and somewhat for the future of the German automotive industry overall. This is nothing less than "a new start in e-mobility for VW in China", writes the portal Electrive very aptly.

"We are entering new territory in the most dynamic and progressive car market. We Never Stop!" writes the China CEO of VW himself. The fighting spirit is unmistakable and is displayed offensively. Whether the ID Uniyx will now reach Chinese customers or not—nobody can accuse VW of not having faced the fierce competition in China.

This analysis is not diminished by critical questions. The most important of these is whether this striking brand appearance is still coming early enough. Chinese e-car manufacturers had several years in which they could cultivate the new field of "smart e-cars" more or less alone, undisturbed by internationally established car manufacturers.

New appearance with familiar modular technology

The second critical question is whether a range of about 600 kilometers (approx. 373 miles) is still sufficient in this category to convince customers. The drive is the same as in other MEB models, such as the Cupra Tavascan, which is built in the same factory in Anhui. Does this look like a real restart? Is that enough? Because time is pressing. The paradigm shift to e-mobility has given Chinese manufacturers a chance, which they have seized wholeheartedly.

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"Around 97 percent of 1,000 respondents in our survey in China say their next car will likely be an electric car, compared to 35 percent in the U.S. and 43 percent in Europe," according to a market research report from consulting firm Alix Partners. "Chinese consumers are overwhelmingly willing to consider a domestic model," add the market researchers. This is the environment that VW currently finds itself in China.

According to its own information, the OEM intends to bring four more ID UNYX models to the market there by 2026, "SUVs and also sedans". By 2030, VW's "Master Plan" for China envisages the introduction of a total of 34 new models, 16 of them electric. VW has clearly understood several things that are probably of decisive importance for the future success of German and international car manufacturers in China:

1. VW has dropped the arrogance that Germans know better than the Chinese how good cars should look. In Hefei, VW is trying to tap into the vibe of the tech-savvy Chinese market, to pick up on its trends, and to convert them into new, hopefully lucrative products. The new ID Unyx is a clear testament to this.

2. Volkswagen has understood that cars in China are sold more through immediate, sensual incentives than in Germany or Europe. Better panel gaps or shock absorbers do not decide on a new purchase here, but lifestyle elements such as the individually adjustable avatar in the cockpit or the golden logo on the steering wheel.

For VW, the ID Unyx is thus proof of a now steeply rising learning curve. Internationally speaking, the car is proof of the trend that the development of cars will be increasingly influenced by the desires of Chinese customers in the future.