Location: Shanghai
Industry: Automobile manufacturing
Suitable time: 1 Day
SAIC VOLKSWAGEN AUTOMOTIVE CO., LTD. (hereinafter referred to as SAIC VOLKSWAGEN) is a Sino-German joint venture founded by SAIC Motor from China and Volkswagen Group from Germany, with each party holding a 50% stake. The company is headquartered in Shanghai and the joint venture contract was signed in October 1984. It was officially established on February 16, 1985.
As one of the oldest automotive joint ventures in China, SAIC VOLKSWAGEN is not only Volkswagen Group's first joint venture in China but also China's first joint venture for passenger cars. It has played a pivotal role in the evolution of China's modern automotive industry, guiding it from its early days to becoming a vital part of the global automotive sector.
Over the decades, the company has built robust systemic capabilities and achieved significant production milestones. By 2023, it reached 27 million vehicles produced, and has since surpassed a cumulative production and sales volume of 30 million vehicles. By 2024, the joint venture had earned the trust of more than 28 million customers.
SAIC VOLKSWAGEN has established an extensive production network with bases in Shanghai, Nanjing, Yizheng, Ningbo, Changsha, Urumqi, and other locations.
Brands and Products
The company currently produces and sells vehicles under the Volkswagen (VW) and AUDI brands, covering a wide range of market segments including sedans, SUVs, and MPVs. The Volkswagen brand portfolio includes popular model lines such as the Lavida Family, Lamando, Passat Family, Tiguan Family, Teramont Family, Tharu Family, Viloran, and the all-electric ID. Family. SAIC Audi offers models including the A7L, Q6, A5L Sportback, and Q5 e-tron.
Electrification and Smart Connectivity
In response to the industry-wide transformation towards electrification and smart connectivity, SAIC VOLKSWAGEN has been actively promoting its transformation and upgrading, with a strong focus on developing new energy products. The company is committed to advancing its "In China, for China" strategy. In 2026, SAIC VOLKSWAGEN plans to launch seven new energy vehicle models, including the Volkswagen ID. ERA 9X, AUDI E7X, Passat ePro, and Tiguan L ePro. The company is comprehensively deploying range-extended, plug-in hybrid, and pure electric technology routes. By 2030, the company will launch 18 new models, 15 of which will be exclusively developed for the Chinese market.
Future Outlook and Milestones
In November 2024, SAIC Motor and Volkswagen AG signed an extension of their joint venture agreement for another 10 years, prolonging their collaboration until 2040. This marks the second renewal of the partnership and underscores the long-term commitment and confidence both shareholders have in the joint venture's future. The extension aims to accelerate the transformation of SAIC VOLKSWAGEN in the areas of product portfolio, production, and decarbonization.
A visit to SAIC Volkswagen offers international business delegations, professional organizations, and student groups a unique window into China's industrial transformation, the evolution of Sino-German cooperation, and the future of mobility. As China's oldest and most iconic automotive joint venture, SAIC Volkswagen stands as a living case study of how global partnership, technological innovation, and local adaptation can drive sustained success over four decades.
1. Understanding a Historic Sino-German Partnership
SAIC Volkswagen was established in October 1984, when SAIC Motor and Volkswagen Group signed their joint venture agreement at the Great Hall of the People in Beijing. It was China's first passenger car joint venture and the first to produce complete vehicles. Today, with cumulative production and sales exceeding 30 million vehicles, it remains the oldest automotive joint venture in China.
In November 2024, the two shareholders extended their partnership for another 10 years to 2040 - the second early renewal, extending the joint venture to 55 years and making it the longest-lasting automotive joint venture in China. This long-term commitment demonstrates mutual confidence and provides a powerful example of how international collaboration can thrive across generations.
For foreign visitors, observing this partnership firsthand offers invaluable insights into successful cross-cultural business models, trust-building across borders, and the strategic importance of the Chinese market to global enterprises.
2. Witnessing China's Automotive Industrial Evolution
SAIC Volkswagen has played a pivotal role in building China's modern automotive industry from the ground up. The iconic Santana sedan - introduced in 1984 - was more than just a car; it was the catalyst that spurred the development of a domestic auto parts industry capable of meeting international standards. As the company's 40th anniversary celebration noted, SAIC Volkswagen "participated in and promoted the evolution of China's modern automotive industry from its early days to becoming a vital part of the global automotive sector".
Visitors gain a comprehensive perspective on how China transformed from a nation without a modern auto industry into the world's largest vehicle market. The factory tour, often combined with visits to the Shanghai Auto Museum, allows international guests to trace this remarkable journey through archival materials, production displays, and expert presentations.
3. Experiencing Cutting-Edge Manufacturing and Smart Technology
SAIC Volkswagen's production facilities represent the forefront of automotive manufacturing. The MEB New Energy Plant in Anting - Volkswagen Group's first factory globally built exclusively for the MEB platform - features fully automated, unmanned production lines that leave visitors in awe. The plant utilizes over 160 RFID readers for full life-cycle vehicle data tracking, and AGV (Automated Guided Vehicle) smart carts achieve material transport precision within ±10mm.
The company has established a comprehensive 360-degree quality management system spanning supply chain, production, marketing, and customer service - a benchmark that enables SAIC Volkswagen to stand out in fierce market competition. For business and engineering professionals, this hands-on exposure to world-class manufacturing processes, quality control systems, and intelligent production technologies offers direct insights into operational excellence that can be applied to their own organizations.
4. Gaining Strategic Insights into Electrification and Digital Transformation
SAIC Volkswagen is actively navigating the industry's shift toward electrification and smart connectivity. The company has defined 2026 as its "decisive year for new energy transformation," planning to launch seven all-new new energy vehicle models covering pure electric, range-extended, and plug-in hybrid technology routes. By 2030, SAIC Volkswagen will introduce 18 new models, 15 of which will be developed exclusively for the Chinese market.
Under its "In China, for China" strategy, the company is accelerating transformation across product portfolio, production, and decarbonization. Visitors gain strategic insights into how a traditional automotive giant pivots toward new energy and intelligent vehicles while maintaining its leadership in the internal combustion engine segment - a dual-track strategy of "advancing ICE and EV in parallel, and applying intelligence to both".
For corporate delegations, this provides a compelling case study in managing organizational transformation, balancing legacy businesses with innovation, and adapting global strategies to local market dynamics.
5. Appreciating Localization and "Global Wisdom + China Speed"
One of SAIC Volkswagen's key success factors has been its deep commitment to localization. The company doesn't simply import German technology; it adapts vehicles to Chinese road conditions and consumer preferences. The Lavida, launched in 2008 as a model developed specifically for Chinese consumers, became an instant success and exemplifies this localization philosophy.
Today, SAIC Volkswagen combines "global wisdom with China speed" to accelerate its intelligent and electric transformation. The company is moving beyond pure technology transfer toward co-development, with local Chinese technology integrated early in the development process. For international visitors, this evolution from technology importer to collaborative innovator offers important lessons about successful localization strategies in emerging markets.
6. Building Networks and Fostering International Exchange
SAIC Volkswagen has long served as a premier destination for international delegations. The company's industrial tourism program has hosted numerous state, provincial, and municipal leaders as well as distinguished guests from Korea, Germany, and beyond, receiving high praise from all visitors. Foreign experts who have participated in cultural tours consistently report deepened understanding of China's automotive industry and valuable cross-cultural exchanges.
For student groups, the visit bridges the gap between classroom theory and industrial practice, helping participants understand industry demands, align their skills with market needs, and plan professional trajectories. For corporate and organizational visitors, the experience stimulates new thinking, inspires innovation, and creates networking opportunities with SAIC Volkswagen's management and technical experts.
Conclusion
A visit to SAIC Volkswagen is far more than a routine factory tour. It is an immersive educational experience that combines industrial history, manufacturing excellence, strategic transformation, and cross-cultural collaboration. Whether for students seeking to connect theory with practice, professionals aiming to benchmark against an industry leader, or organizations pursuing insights into China's business environment and the future of mobility, the visit offers enduring value. As SAIC Volkswagen embarks on its "second entrepreneurship" in the electric and intelligent era, the lessons learned from this pioneering joint venture become increasingly relevant for anyone navigating the rapidly evolving global automotive landscape.
10:30-12:00 Theme sharing: "Essence of Lean Production Concept of SAIC Volkswagen"
12:00-13:30 Lunch and Rest
13:30-16:30 Theme Sharing: "Eliminating Waste, Creating Value, Continuous Improvement"
