Volkswagen's First Entry into Extended Range: How to Win a Tough Battle?

Author | Wang Xiaojuan

Editor | Zhou Zhiyu

By 2026, China’s new energy vehicle market has long shifted from blue ocean to red ocean in the extended-range segment. SAIC Volkswagen’s approach is to directly target the flagship—no trial water at the 150,000-yuan level, no exploration in compact class. Its first extended-range vehicle is anchored at the ceiling price of large six-seat SUVs, competing head-on with Li Auto L9 and Wenjie M9.

Prior to this, players like Li Auto and Wenjie have been deeply cultivating the extended-range track for years. At the start of 2026, 12 new extended-range models flooded the market, with NIO ES9, Zhiji V9, and ID. ERA 9X simultaneously announced by the Ministry of Industry and Information Technology. The three-row SUV market has transformed from a competition among three or five brands into a chaotic battle among more than ten automakers.

Volkswagen’s entry now raises the question: is it “late but arriving” or “too late”? Volkswagen Passenger Cars China CEO Zizekai and SAIC Volkswagen Sales and Marketing Executive Vice President and General Manager of Shanghai SAIC Volkswagen Automotive Sales Fuchang have provided their answers.

In their view, Volkswagen is not here to share the cake but to “set the standard.”

Fuchang candidly stated in the interview that the most painful and time-consuming part of R&D is the extended-range system. “When we decided to develop extended-range, we told ourselves we must do something different. We conducted extensive user research and found many complaints about extended-range vehicles in cold weather, high-altitude areas, and when the battery is depleted.”

A common pain point in the extended-range industry is: “Full charge is a dragon, depletion is a worm.” In severe cold and high-altitude environments, power performance differences can sometimes reach 100 or even 200 kilometers. The goal for ID. ERA 9X is to reduce this gap to 5%–8%.

Real-world data shows that in -30°C conditions in Heihe, acceleration from 0-100 km/h in depleted state is only 0.8 seconds slower than in full charge; in Lhasa at 3,650 meters altitude, acceleration differences between high and low battery states are only 0.18 seconds; noise change in the rear seats during generator engagement is less than 0.5 decibels.

Zizekai added the engineering logic behind this: “Volkswagen has over 8,000 engineering standards. Studying these standards isn’t for the standards themselves but because we’ve accumulated a vast amount of data over decades. In many aspects, our standards exceed regulatory requirements.”

The EA211 1.5T extended-range engine is the core of this technology. Built on a globally popular engine with over 20 million units, it features VTG variable-geometry turbo, 350bar high-pressure direct injection, and deep Miller cycle. The 65.2 kWh CATL battery offers a CLTC pure electric range of over 400 km—enough for most commuters to charge once a week, with the extended-range system truly serving as a “long-distance backup.”

The greater significance of ID. ERA 9X lies in its exploration of “Joint Venture 2.0.” Traditional joint ventures follow the model of “foreign technology export, Chinese market responsibility,” whereas JV 2.0 shifts from “technology introduction” to “technology co-creation.”

This vehicle is led by a Chinese team defining the product, deeply integrating local supply chains—CATL batteries, Momenta intelligent driving—while adhering to Volkswagen’s global engineering standards. Fuchang emphasized: “Everyone uses the same suppliers, but the results and user experience are completely different. Our R&D center plays a crucial role here.”

Zizekai likened it to cooking: “We want to better incorporate the best ingredients into China’s ecosystem, while Volkswagen has its own ‘secret recipe.’”

Whether this “German craftsmanship + Chinese supply chain” combination can succeed will directly impact the market performance of SAIC Volkswagen’s subsequent six new energy models.

The market landscape in 2026 is changing. Pure electric cooling down, extended-range heating up—this has become industry consensus. In February, the penetration rate of new energy vehicles reached 36.4%, with traditional fuel vehicles still holding two-thirds of the market. The latest batch of new car declaration catalogs from MIIT still mainly focus on developing new pure electric platforms, with Tesla and NIO nearly alone in this effort.

The timing of ID. ERA 9X’s entry is reasonable. The extended-range market has been educated by pioneers, and users are shifting from chasing novelty to valuing quality, reliability, and consistent performance across all conditions. Volkswagen’s return with “system strength” can raise the quality threshold for extended-range vehicles.

However, challenges are evident. The 9 series market competition is fierce, and Volkswagen’s reputation in new energy still needs rebuilding. More importantly, when competitors iterate every 12 months, can Volkswagen’s 24-month product cycle keep pace with market changes? Its initial performance after the March 30 pre-sale will provide an early answer.

To some extent, this vehicle carries more than Volkswagen’s own gamble. In 2025, joint venture brands collectively fell silent in the new energy market; Volkswagen Group delivered about 2.69 million units in China that year, with less than 4.5% being new energy. FAW-Volkswagen, SAIC-GM, Dongfeng Nissan are all exploring their own transformation paths but have yet to produce a market-recognized new energy model.

ID. ERA 9X’s attempt to demonstrate the “German standards + Chinese supply chain” model is essentially a collective breakthrough experiment for joint ventures in the new energy era. How far this path can go is not only watched by Volkswagen but also signals to the entire joint venture camp.

The following is an edited excerpt of the dialogue between Wall Street Insights and Volkswagen Passenger Cars China CEO Zizekai and Fuchang, Vice President of SAIC Volkswagen Sales and Marketing (not affecting original meaning):

Q: In the fierce “9 series battle,” what makes ID. ERA 9X stand out in the market?

Fuchang: This year is indeed the “9 series battle.” Besides IM Motors and Li Auto, many OEMs will join the competition in the first half. SAIC Volkswagen is confident to stand out because we approach this product with an aggressive mindset, featuring nine industry-first black technologies. Previously, Volkswagen’s electric vehicles were more about following trends, but this time we lead product iteration with technology, solving pain points in the extended-range industry through innovation. I believe this effort will be rewarded positively by the market.

Second, ID. ERA 9X’s smart experience—whether in intelligent driving, intelligent cockpit, or smart chassis—has already reached the top industry standards, and Volkswagen also has its own industry-first black technologies in smart cockpit and driving.

Third, the quality of a major manufacturer. The product combines technological attributes and innovation, but beyond that, Volkswagen’s brand is backed by “safety, quality, and reliability.” By integrating top German craftsmanship with China’s smart capabilities and leveraging “China speed,” I believe this vehicle is a “battle-ready” flagship product in the 9 series market.

Q: Will this China-developed model go global? Any new changes in supply chain cooperation?

Fuchang: This product is not only designed for the Chinese market. Volkswagen has three major R&D centers worldwide, with China now being one of the most important. In some product development areas, China’s pace surpasses other markets, and Chinese suppliers can also offer opportunities globally. We select partners across different types, like cooking—combining the best ingredients into China’s ecosystem, while Volkswagen has its own “secret recipe” to craft excellent products. This “secret recipe” is crucial.

Zizekai: Volkswagen has over 40 years of operation in China and is very close to users. Future internal combustion engine models will also adopt the CEA electronic architecture, with many smart technologies shared across vehicle types. Meanwhile, the ICE business remains a stable pillar, enabling continuous investment in future innovations.

Q: How to maintain a vehicle’s long-term vitality? Where is SAIC Volkswagen’s core competitiveness?

Fuchang: The new energy market is highly competitive now. It’s hard for a single model to become popular, and even harder to sustain that popularity. To achieve long-term vitality: first, define the product well—understand user needs and even uncover unmet needs; second, cars are durable consumer goods—while seeking novelty, safety and quality must be maintained; third, reputation is key—like a snowball, only with good quality and user praise can it grow larger; fourth, continuous R&D—by the time the first model is launched, the second and third are already in pre-research.

Core competitiveness includes: first, innovation capability. Volkswagen invests heavily in China’s R&D centers, not just bringing in suppliers but co-developing, because we have our own car-making philosophy and standards; second, user-centric capability—what we call “human-centered technology,” designing technology around people, not for technology’s sake; third, system strength. SAIC Volkswagen has a robust system integrating German and Chinese high-tech, making it even stronger.

Zizekai: Volkswagen in China has over 40 years of experience, very close to users. Future ICE models will adopt CEA architecture, sharing many smart features across models. Meanwhile, the ICE business remains a stable foundation, allowing us to keep investing in future innovations.

Q: Is this Volkswagen’s first extended-range model, based on China market features, or will it be promoted globally?

Fuchang: We internally call this vehicle the “Flagship Campaign,” showcasing the latest R&D tech, aiming to compete with IM M9 and Li Auto L9, hoping to expand the high-end six-seat SUV market. SAIC Volkswagen plans to launch six models this year—please be patient.

Zizekai: Choosing the extended-range route is because we see the coexistence of pure electric, hybrid, and other power forms in China will continue. The ID. ERA 9X also has advantages in other markets, especially in the six-seat SUV category. As for exports, European demand differs from China, with different regulations and road conditions. We will consider export plans, but specific markets are still under evaluation.

Q: What was the most painful moment in developing this vehicle?

Fuchang: The most painful and time-consuming part was developing the extended-range system. When we decided to do extended-range, we told ourselves we must do something different. User research revealed many complaints about cold weather, high-altitude, and battery depletion scenarios. The marketing team defined the product to effectively address these issues. Although we used the EA211 engine, whether it could solve industry pain points in the extended-range application was uncertain at first. We set clear requirements for R&D: if we do it, it must be the best in the industry. The entire development cost a lot and involved two harsh winters and summers of testing.

In January, Zizekai and I went to Heihe for extreme cold tests at -30°C to -40°C. Volkswagen’s redundant design is excellent—when unexpected situations occur, it provides great safety and handling confidence. Over half of China’s territory faces such environments, from the north of the Yellow River to the high-altitude regions of the southwest and northwest.

As a joint venture established in 1985, we have an obligation not to produce just an average extended-range vehicle but to overcome these pain points and demonstrate value first in this industry.

From a sales perspective, there’s always a desire to launch products faster, but Volkswagen’s standards are extremely strict. The vehicle was defined early on not only for China but also with future exports in mind, adopting Volkswagen Group’s global standards—two winters, two summers of testing, 100,000 km, and 300,000 km bench tests are all mandatory. This has taken time, so the extended-range lineup arrived later, but we want to deliver a good answer to the market.

For example, Volkswagen’s safety standards differ from others. The previous ID. series vehicles’ lights automatically turn on when the vehicle moves and cannot be turned off—that’s our safety philosophy. We tell suppliers that R&D must meet Volkswagen’s logic and standards before approval. In smart cockpit and driving systems, aligning R&D logic with suppliers revealed many differences from other companies. We are proud of these differences—they will ultimately be perceived by users and help our products last longer.

Zizekai: It involves collaboration between the Chinese and German teams. The joint venture deeply understands Chinese user needs. The extended-range solution was proposed precisely to address market pain points. Volkswagen has over 8,000 engineering standards, and studying these isn’t for the standards themselves but because of decades of accumulated data. In many aspects, our standards surpass regulations. From a sales perspective, progress may seem slow because we are uncompromising on engineering and safety, spending a lot of time on strict testing and validation.

Different teams focus on different engineering priorities—meeting Chinese regulations, responding to sales feedback, and maintaining Volkswagen’s brand DNA. During development, there are often intense discussions, but the core remains user-centric.

Q: What specific pain points does the ID. ERA 9X solve? Who is the target audience?

Fuchang: The biggest pain point in extended-range is the inconsistent power performance during battery depletion or full charge, especially in cold and high-altitude conditions, where differences can reach 100–200 km. Our R&D can reduce this gap to 5%–8%, providing consistent performance across all conditions.

Additionally, the “Dynamic Zero Gravity Seat” addresses the limitation of traditional zero-gravity seats only usable in parking. A responsible company cannot let seats stay in zero-gravity mode during vehicle movement because in a collision, seat belts could become “strangulation belts.” Our dynamic zero gravity seats can be enjoyed even while the vehicle is moving.

Target groups are twofold: first, modern family users across three generations, with weekend trips and long holiday drives, needing large six-seat vehicles emphasizing safety, reliability, and comfort; second, business customers—former MPV buyers now shifting to large SUVs. These SUVs trend toward MPV-like interior quality but with better off-road capability and driving experience.

These users value high-tech features, like refrigerators, large screens, and sofas, but beyond that, we offer the reassurance of top-tier quality, safety, and durability, ensuring peace of mind and a pleasant driving experience.

Zizekai: Solving user problems isn’t just about features but also about engineering standards. For extended-range models, we set very specific technical requirements to ensure optimal performance at different battery states, maintaining long-term power output and minimizing performance gaps.

Q: How to get consumers to add ID. ERA 9X to their shopping list? What about pricing considerations?

Fuchang: ID. ERA 9X will start pre-sale on March 30 and officially launch in mid-April. We designed it to target the high-end six-seat SUV market, inspired by Li Auto L9 and IM M9. The key highlights are twofold: first, the extended-range experience is excellent—almost imperceptible engine engagement, very quiet driving, and consistent performance during engagement, surpassing all competitors; second, intelligent driving assistance—detailed at the March 16 tech release, developed jointly with Momenta, offering industry-leading smart assistance.

Our slogan is “Super Volkswagen, Beyond Imagination.” With nine black technologies, this vehicle aims to deliver many unexpected experiences.

Zizekai: The core is the product’s strength and value. Our features are top-tier in the segment. Compared to previous models, we also aim to create higher emotional value, emphasizing the connection between technology and user lifestyle. The extended-range system’s excellent performance and features like the Smart Surface magic screen will enhance emotional engagement.

Pricing is not yet disclosed. Price is important, but relying solely on price competition carries risks. Consumers consider many factors beyond price. We will carefully invest and set a reasonable price, balancing value and cost.

Q: How does “full-spec” differ from other “top configurations”? Where are the main costs invested?

Fuchang: Our “full-spec” has its own definition—covering advanced intelligent driving, assistance, comfort, luxury, design, power, and safety. This time, we focus especially on driving assistance and performance. For intelligent cockpit, we didn’t just follow the “big screen, sofa” trend but returned to essentials—what do consumers truly need in a smart cockpit? We co-created the “Yunqi Cockpit,” aiming to give users a home-like experience, like being embraced by clouds, relaxing completely. We introduced Smart Surface technology, hiding screens behind interior panels—industry first.

Most other SUVs on the market display information via small LEDs or side buttons. Our design offers emotional and aesthetic value, plus practical benefits like safety, dynamic zero gravity seats, active noise reduction, gentle wind climate control, Nappa leather, and baby-grade eco standards.

Additionally, the flagship not only aims for strong sales but also has strategic significance—redefining brand image. We want Chinese consumers to see Volkswagen anew: a brand that’s always safe and reliable, but also innovative and progressive. We want users to feel Volkswagen is no longer conservative or just following trends but boldly innovating in technology. We are an enterprising and caring Volkswagen. Human-centered technology is the best expression of a caring brand because technology exists to serve human needs.

Zizekai: This is a distinctive product with many industry-first features, not just following market trends. The real difference is that when you drive it, you can feel its uniqueness and Volkswagen’s consistent DNA. Over years of use, users will further appreciate its durability and the value brought by our comprehensive after-sales system. Our complete parts, maintenance, and service network ensures a worry-free experience.

Q: What is the Chinese name of ID. ERA 9X?

Fuchang: The English name is ID. ERA 9X, and we nickname it “Volkswagen 9X,” simple and memorable.

Q: What is the meaning of “All-New Forward”?

Fuchang: We’ve made significant changes in marketing—called “marketing transformation.” With the entry of 3C industry players into automotive, marketing logic has changed—not only due to media fragmentation but also because marketing tactics have evolved. A vehicle can be very popular during pre-sale and receive large orders at launch. It’s our responsibility to communicate product value effectively through marketing.

Preheating the product started early—concept cars at Shanghai Auto Show last year, official pre-heating in January, inviting media and users for winter testing, a tech launch on March 16—layered steps to ensure a strong brand and product presence during pre-sale.

We carefully designed a good product and hope that through our efforts and media support, it will be widely known that Volkswagen has invested heavily to create a product that’s “less typical but very Volkswagen.” We hope the pre-sale is a success and that the launch generates excellent orders.

Zizekai: We are also exploring innovative car financing plans, starting with ID. ERA 9X, and will further enhance after-sales service, including insurance claims and other processes, by adopting new technologies for a smoother experience.

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