Volkswagen (VW) and BMW have partnered with Chinese companies, reinforcing the strong cooperation between China and the European Union in the automotive sector.
Volkswagen’s joint venture with FAW Group will introduce 11 new models for the Chinese market in 2026, including six electric vehicles (EVs), two plug-in hybrids, two extended-range models, and one gasoline-powered car. The agreement was signed in Wolfsburg, Germany, as part of VW’s ‘In China, for China’ strategy. Ralf Brandstätter, chairman and CEO of Volkswagen Group China, emphasized the importance of VW’s long-standing partnership with FAW in supporting its success in China.
Meanwhile, BMW has partnered with Huawei to develop an in-car digital ecosystem in China using Huawei’s Harmony operating system. The move highlights the growing role of Chinese technology firms in the global automotive industry.
Expanding China-Europe Automotive Ties
Zhang Xiang, director of the Digital Automotive International Cooperation Research Center, noted that Volkswagen and BMW’s latest collaborations reflect the significance of the Chinese market. He emphasized that China’s advancements in EV technology help drive cost reductions and promote global industry growth.
Additionally, Hesai Technology, a Chinese firm specializing in lidar technology for automotive mobility and robotics, announced a new exclusive design partnership with a leading European original equipment manufacturer (OEM) on March 10. The agreement includes supplying ultra-long-range lidar for internal combustion and EV models under a multi-year program, marking a milestone in the global automotive lidar sector.
These developments come amid ongoing trade tensions between China and the EU, particularly regarding the EU’s anti-subsidy tariffs on Chinese EVs. However, despite tariffs reducing sales for some brands, China remained the global leader in EV purchases in February, according to London-based research firm Rho Motion.
Future of China-Europe Automotive Collaboration
Chinese Commerce Minister Wang Wentao recently reaffirmed China’s openness to European automakers increasing investments in the country. During a discussion with Ola Källenius, president of the European Automobile Manufacturers’ Association and chairman of Mercedes-Benz, Wang stressed that resolving the EU’s anti-subsidy case against Chinese EVs would benefit both sides and align with broader industry interests.
Chinese automakers are also expanding their presence in Europe. Chery has partnered with Spain’s Ebro to develop EVs, while BYD is manufacturing vehicles in Hungary. By building a robust supply chain for new energy vehicles, Chinese and European companies are fostering sustainable low-carbon economies and advancing the global automotive industry’s transformation.
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