VW Anhui to launch no new EV models until 2028

Volkswagen Anhui will introduce no new electric models in 2027 or 2028, according to two sources familiar with the matter cited by Reuters. The decision freezes the ID. UNYX line-up at four models while Chinese competitors launch new vehicles at ever-shorter intervals. A crossover model considered for 2028 has also been put on hold.

The joint venture's plant in Hefei, eastern China, has an annual production capacity of up to 350,000 vehicles. It is currently operating far below that level, according to Reuters. Volkswagen Anhui was founded in 2017 with JAC; Volkswagen raised its stake from 50 to 75 per cent at the end of 2020 and holds majority control. The venture has not yet generated a profit.

What does the freeze mean for the model range?

The four existing models are the ID. UNYX 06, 07, 08 and 09. Three of them arrived in 2026.

• ID. UNYX 06: an electric SUV coupé launched in 2024 without a model number, closely related to the Cupra Tavascan.
• ID. UNYX 08: a larger electric SUV launched in April 2026, the first VW vehicle to use technology from partner Xpeng.
• ID. UNYX 07: an electric saloon that debuted in May 2026, also built on Xpeng technology.
• ID. UNYX 09: another electric saloon, launched on 24 October from a joint development with Xpeng.

Management had originally considered these four models sufficient to establish the brand among young, urban buyers and grow the business until 2028, Reuters reports. Demand has fallen significantly short of that expectation.

The company has responded with price cuts. In September, it reduced the limited-time starting price of the ID. UNYX 08 to 189,900 yuan (about €23,000), a 17.4 per cent reduction from the launch price. In mid-October, updated versions of the 06 and 07 gained LiDAR sensors (light-detection equipment for driver assistance) and new battery options, while regular starting prices fell by 20,000 yuan each. The ID. UNYX 09 launched at 179,900 yuan, roughly €24,000.

How large is the gap between target and reality?

According to data from consulting firm ThinkerCar, Volkswagen Anhui sold 11,360 ID. UNYX vehicles from January to September. An internal document seen by Reuters indicates a full-year 2026 production volume of 33,000 vehicles. For 2027, the document targets 128,000 units.

The ID. UNYX 08 shows how steep that climb is. Between April and August, the SUV averaged 267 sales per month, according to ThinkerCar. Volkswagen had originally calculated 3,622 units per month.

Distribution adds to the problem. Reuters reported in October that the venture operated 166 sales outlets. It is now expanding the network and working with selected FAW-Volkswagen dealers. Volkswagen China told Reuters it is "focusing on expanding and optimising the joint venture's dealer network to reach more customers and achieve sustainable growth."

The Hefei plant also builds the Cupra Tavascan for export, with the internal document forecasting around 33,000 units this year. Since February 2026, the Tavascan has been subject to a minimum price rule in the EU instead of the usual special tariff on Chinese EV imports — the first vehicle of its kind under that arrangement.

Does this contradict VW's broader China offensive?

At first glance, yes. Volkswagen has announced 30 new NEVs (new energy vehicles, the Chinese category covering battery-electric, plug-in hybrid and range-extender cars) in China by 2029 across its three joint ventures with FAW, SAIC and JAC. Volkswagen Anhui is expected to play a role. Volkswagen China told Reuters the ID. UNYX brand "will remain competitive through model updates and technical enhancements."

The wider group is not standing still. On Wednesday, Volkswagen reported a record for its namesake brand in China: more than 28,000 NEV deliveries in October, 4.5 times the previous year's figure. That growth rests on the broader model range across the other joint ventures.

The weak China business still weighs on the group. From January to September, Volkswagen sold just over 1.3 million vehicles in China, a 31.2 per cent decrease year on year, according to the China Passenger Car Association and the quarterly report. The overall Chinese market contracted by nearly 22 per cent.

CFO Arno Antlitz said during the latest quarterly presentation that Volkswagen Anhui should reach break-even by 2030.

What to watch next: whether the 128,000-unit target for 2027 survives contact with the ID. UNYX run rate, and whether the delayed 2028 crossover returns to the product plan before then.