(Yicai) Dec. 9 -- This year’s wave of stricter regulations and higher safety and technical standards in China’s auto sector are a boon for established carmakers that consistently adhere to higher standards, according to the chief executive of Volkswagen Group's Chinese passenger vehicle business.

The policies introduced this year raise the competitive threshold for all market participants and may accelerate the concentration of brands that can meet stringent requirements without sacrificing innovation and user experience, Robert Cisek said in a recent interview with Yicai.

To regulate the fast-growing electric vehicle industry, the Ministry of Industry and Information Technology brought out new regulations this year covering areas such as battery safety, advanced driver assistance systems, and car door handles. The Ministry of Public Security also released draft auto safety standards last month, which among other things propose that passenger cars should not be able to accelerate from 0 to 100 kilometers per hour in under 5 seconds.

These rules not only steer innovation in the right direction, but also deliver much-needed protection for consumers in a rapidly changing market, Cisek pointed out. For example, the proposal  to limit acceleration reflects concern about unnecessary performance competition, a stance that aligns well with Volkswagen’s long-standing emphasis on driving safety, he said.

In response to fierce competition in China’s auto market, Volkswagen is speeding up its strategic transformation. Part of that involves partnering with domestic EV startup Xpeng Motors to jointly develop the China Electrical Architecture, a platform for the electronic and electrical systems in its Chinese cars.

From next year Volkswagen's three joint ventures in the country will share electrification development platforms, including the CEA. At the same time, Volkswagen Group China Technology based in Hefei, Anhui province will serve as the research and development center responsible for coordinating these efforts, Cisek noted.

This will help avoid redundant investment while allowing the JVs to tailor products for their specific target users, thereby maximizing synergy, he explained. The JVs are FAW Volkswagen with FAW Group, SAIC Volkswagen with SAIC Motor, and Volkswagen Anhui with JAC Motors.

Editors: Dou Shicong, Futura Costaglione