German carmakers reaffirm China ties

Major German car firms have reaffirmed their commitment to China, highlighting the role of the country as a source of innovation in the global automotive industry, during the visit of Chancellor Friedrich Merz to China last week.

"China is the largest automotive market in the world and one of the most important technology and innovation powerhouses in our industry," said Oliver Zipse, chairman of the board of management at BMW, in an interview with CGTN.

Zipse was a member of the business delegation as part of the German chancellor's two-day visit to China on Wednesday and Thursday.

BMW has established its largest research and development location outside Germany in Shenyang, Northeast China.

It also has innovation bases in Beijing, Shanghai, and Nanjing, Jiangsu province, focused on vehicle development, digital services, software systems and autonomous driving.

Zipse highlighted the importance of Sino-German cooperation with the example of the forthcoming Neue Klasse iX3 SUV, which it will present at the Beijing auto show in late April.

"Battery cells come from CATL. The autonomous driving stack is jointly developed with Momenta. And the large language model for the BMW intelligent personal assistant is the result of our longstanding partnership with Alibaba," he said.

During the visit, BMW announced a memorandum of understanding with Chinese battery maker CATL to deepen cooperation on cross-border battery passport data trials and coordinated carbon reduction across their supply chains.

The agreement highlights the growing importance of digital traceability and emissions transparency in the global electric vehicle battery ecosystem.

Ralf Brandstaetter, president and CEO of Volkswagen Group China, has called for greater emphasis on China. "Anyone who is serious about driving transformation in key sectors — from mobility to renewable energy — cannot look past China," he said.

Volkswagen was one of the first global carmakers to operate in the country, with its first joint venture established in 1984.

The German carmaker has revved up its R&D presence and partnerships with local technology companies including Horizon Robotics and XPeng since Brandstaetter came to take the helm of Volkswagen's China operations in late 2022.

"Today, China is far more than a sales market for the Volkswagen Group and for German and European industry overall. It is a hub of innovation, a key technology partner, as well as a pillar of global value creation," said Brandstaetter.

"Few places move as fast in areas such as electromobility, software, artificial intelligence and battery technology. China is setting the pace and shaping standards," he said.

Now Volkswagen can conduct end-to-end R&D in Hefei, East China, the first such place outside Germany.

Volkswagen sees the hub as more than just an innovation center — it is a strategic anchor to reclaim competitiveness in the age of new energy vehicles.

In Hefei, Volkswagen can now conduct battery and powertrain testing, software-hardware integration, electromagnetic compatibility assessments and full-vehicle validation. It includes road-condition simulations and real-world verification on an urban test track designed to replicate real conditions.

Its overall vehicle development time in China is around 30 percent shorter than in Germany, and in some projects cut model costs by up to 50 percent.

"China is the world's most competitive automotive market, and our customers here expect rapid innovation and flawless quality," said Brandstaetter.

"By expanding our footprint in Hefei, we are strengthening our ability to respond quickly to local needs and to shape technologies directly where they will be used," he said.

lifusheng@chinadaily.com.cn