Volkswagen Group plans to launch a new subbrand for electric cars in China to help the automaker reverse its sliding market share in the country.
The subbrand will launch with the Cupra Tavascan full-electric SUV, a sibling model to the VW ID5 and Skoda Enyaq Coupe iV. Its models will be targeted at VW's new rivals in China such as Nio and BYD.
The Tavascan will not be sold as a Cupra model in China. Instead, the coupe-styled midsize SUV will be the first model for a subbrand positioned as a lifestyle marque to appeal to younger buyers, just as Cupra is in Europe.
VW is not launching the Cupra brand in China for practical reasons, a high-ranking manager told Automotive News Europe sister publication Automobilwoche.
"Setting up a completely new brand is far too costly. We won't do that," said the executive, who declined to be named because he is not authorized to speak publicly.
VW's Jetta subbrand, which was launched in China as an entry-level marque in 2019, has failed to gain traction. The group's Skoda brand also has not been successful and is likely to be withdrawn from the Chinese market. Both marques are languishing with a market share below 1 percent.
The subbrand will have its headquarters in Anhui, where the Tavascan will be built in a recently opened plant. Tavascan production will start in December. The SUV will be exported to Europe.
