(Yicai) Jan. 28 -- Volkswagen Anhui, the electric vehicles joint venture of the German auto giant with Chinese carmaker JAC Motors, is considering producing extended-range models to cater to market demand, according to the chief executive of the sales and services unit under the JV.

The initial plan was for Volkswagen Anhui only to produce pure electric models, but plans need to keep pace with market changes, Stefan Timmermann, CEO of Volkswagen Anhui Digital Sales and Services, told Yicai recently. Demand for extended-range EVs is substantial, so the company has to make corresponding adjustments, he noted.

The frequency of launching new EVs and the intensity of price competition in the Chinese market have exceeded expectations, Timmermann said. Volkswagen Anhui's approach to countering competition is to enhance financial efficiency and accelerate the release of new models across all aspects, he added.

Volkswagen Group has gradually shortened the research and development cycle for new models from the original four years to less than three years, Timmermann noted. While the company may not be able to fully compete with Chinese rivals in terms of timeline, it has always prioritized safety, quality, and reliability, he pointed out, adding that it will conduct more tests on the chassis, batteries, and crashworthiness of new models, a practice it will continue to uphold in the future.

Volkswagen Anhui is Volkswagen's third JV in China after FAW Volkswagen with FAW Group and SAIC Volkswagen with SAIC Motor. Its brand is known as the Golden-Emblem Volkswagen series due to its golden emblem, with only one model on sale, the Yuzhong 06.

However, the Yuzhong 07 intelligent pure electric sedan, the Yuzhong 08 full-size pure electric sport utility vehicle, an all-new B-segment pure electric sedan, and an updated Yuzhong 06 are expected to hit the market this year. The new models will adopt the China Electrical Architecture jointly developed by Volkswagen and Chinese new energy vehicle startups XPeng.

Volkswagen Anhui has 120 retail stores, with plans to expand to 200 by the end of the year, focusing on covering third and fourth-tier Chinese cities.

Enhancing competitiveness is the main driving force behind Volkswagen Anhui's layout in more cities, Timmermann said. However, the company does not want to follow in the steps of many other carmakers that rapidly expanded their sales channels only to quickly close shops afterward, he noted.

The profitability of Volkswagen Anhui's retail outlets will improve as more models are launched, according to Timmermann.

Editors: Tang Shihua, Martin Kadiev