In 2020, FAW-Volkswagen was the only passenger car enterprise in China with the volume of both production and sales exceeding 2 million. In 2020, it sold 2,161,888 vehicles (imported Audi vehicles included), a year-on-year growth of 1.5%. Sales under the Volkswagen, Audi and Jetta brands reached 1,280,377 units, 726,288 units and 155,223 units. Despite the headwinds in the Chinese market, FAW-Volkswagen actively sought for innovation and transformation based on its strong capacity and contributed to the recovery of the industry, hence largely boosting the industry’s confidence.

Three arrows are shot, and product matrix is continuously strengthened

Apart from the robust sale in 2020, the Volkswagen yielded fruitful results in electrification and digitization. In April, TAYRON GTE, the first new energy SUV model was officially launched, which was a high quality, more energy-efficient plug-in hybrid SUV. In November, ID.4 CROZZ, the first pure electric SUV based on MEB platform was officially unveiled. In the same month, the new Golf 8 went on sale. As the first vehicle to adopt MQB evo platform, the Golf adopted a brand new electrical architecture. For the first time, CANFD and automotive ethernet technology are equipped. Better Advanced Driver-Assistance Systems (ADAS) and infotainment system, are also used to realize fully digital driving experience and again setting a benchmark for the industry.

2020 also witnessed the peak performance of Audi brand in the history. A variety of Audi products ranked first in corresponding market segments from January to December. In response to customer’s requirement, Audi have renewed all its main car lines, becoming the luxury brand with the widest coverage in market segments. In September, Audi e-tron CKD, the first luxury c-class electric SUV rolled of the production line and was expected to hit the market in early 2021. Audi e-tron CKD will further strengthen its competitiveness. As a SUV model incorporating elements of entertainment, luxury and safety, the Audi e-tron ensured the pleasure of driving a gasoline cars while achieve high-level intelligence and connectivity at the same time. In the future, Audi will create a new landscape of premium new energy vehicle market.

VA3, VS5 and VS7of the Jetta brand, also reported strong sales in 2020. Benefited from FAW-Volkswagen's market reputation and product strength accumulated in a long time, the Jetta brand has earned countless consumers' attention and favor since its establishment. Although it is a new brand, it gained considerable popularity in the market. It earned recognition and trust from more customers because of its reliable safety, good powertrain, economic cost and excellent vehicle handling. Meanwhile, the emergence of the Jetta VS7 has broadened the market segment of joint venture SUV and opened up the "high-value joint venture mid-size SUV" market segment. Considering the flourishing development of the brand, its future prospect is promising.

Electrification plus Digitization, Setting the High-Quality Development Benchmark

In 2020, the Foshan MEB Smart Factory went into operation. ID.4 CROZZ, the first model based on the MEB Platform started its pre-booking and the Audi e-tron based on the MLB evo platform rolled off the production line. This marked that the dual-brand electrification strategy of Volkswagen and Audi was launched and FAW-Volkswagen’s electrification manufacturing system was characterized by international competitiveness and leading advantages in the industry. FAW-Volkswagen has taken a key step in its robust electrification development. When the trend for electrification is sweeping the entire automobile industry, FAW-Volkswagen will set a new benchmark for high-quality development of China's new energy vehicle industry with its world’s leading manufacturing system and high-quality new energy products.

Digital transformation is gradually becoming the vital force to drive the transformation, upgrading and high-quality development of the automotive industry. FAW-Volkswagen was determined to promote its digital transformation and upgrading with a global vision and forward-looking perspective. In 2020, FAW-Volkswagen has made substantial breakthroughs in the digital transformation of both administrative system and product technology and created a new model of enterprise transformation and upgrading. Positioned for innovation and transformation, the company has led the transformation of China's auto industry.

In terms of administrative system, FAW-Volkswagen has reshaped the its digital capability in all aspects, and continued to raise its efficiency steadily by comprehensive coordination of production system, procurement system, operation management system, financial system and marketing system. In terms of product technology, the company has grasped the trend of the time: the deepening incorporation between automobile industry and latest technology including Internet, artificial intelligence and big data. Also, it has continued to expand cross-industry cooperation and built an open, mutually beneficial ecosystem in order to meet the requirement of intelligence in different scenarios of different consumers and to provide the optimum intelligent travel experience for consumers.

Shouldering Due Responsibilities and Diving Deep into the Sustainable Development Mode

As a pioneering enterprise of passenger cars in China, FAW-Volkswagen has responded to the national call by persistently pursuing green and sustainable development and raising quality in five dimensions: products, environmental management system, employee responsibility, administration and industry contribution. It has been committed to achieving a mutually reinforcing coexistence of enterprises, society and the environment. By the end of 2020, Foshan MEB Smart Factory pioneering in zero carbon emission. The "Green Partner" program has mobilized more than 1,300 contractors and nearly 100 suppliers to improve environmental protection level.

The year 2020 is the key year to accomplish the 13th Five-Year Plan and outline the 14th Five-Year Plan. It also marks the 30th anniversary of FAW-Volkswagen and is themed “innovation and transformation year” of promoting transformation and upgrading. Facing the challenges brought by Covid-19 and the deep transformation of the industry, FAW-Volkswagen shouldered the responsibility of the time as a leader in the industry. It has driven the "total value chain co-innovation", dedicated to "innovation and transformation", focused on innovation, become the best-selling passenger vehicle manufacturers in Chinese market, yielded fruitful results of digitalization and electrification transformation. It has accumulated energy for the long-term development of the company and injected fresh impetus into the transformation and upgrading of China's auto industry. Entering the era of CSR strategy 2.0, FAW-Volkswagen will continue to enhance its fundamental responsibility, actively fulfill its social responsibility, promote cooperation between industry, academia and research, offer practical reference for the transformation of scientific and technological achievements into productivity, and create value for the sustainable development of economy and society.