Gasgoo Munich- On July 22, at the "Brand Breakthrough in the New Joint Venture Era" forum of the 2026 China Auto Forum, Liu Zhanshu—who took the helm as CEO of Volkswagen (Anhui) Digital Sales Service Co., Ltd. on July 1—delivered his first public address since assuming the role. Drawing from industry cycles, the positioning of joint venture brands, Volkswagen Anhui's strategy, and hard-won lessons in pricing, he offered deep insights into the current market landscape.Image source: 2026 China Auto ForumIndustry Trend: No Need for Pessimism Among Joint VenturesFaced with the relentless pressure on joint venture automakers' market share, Liu struck a distinctly optimistic note: "Joint ventures and international brands have no reason to be overly pessimistic."He argued that the essence of electrification follows a logic: "Intelligence brings standardization, standardization drives affordability, and affordability unlocks value and scale." As smart features become standard equipment, the gap in experience between smart cockpits and intelligent driving is narrowing. "At this point, only professional drivers can really feel the difference," he noted.At the same time, the focus of automotive launch events has shifted significantly over the past three years. Gone are the long presentations touting novel smart cockpit and autonomous driving features; the conversation is returning to handling, safety, and quality. "Users are returning to core values. Safety, quality, durability, and handling—functional essentials that no car can lack in any era—are becoming the focal points of competition once again."Liu also shared findings from his long-term study of global automotive history. In the 1910s, Detroit boasted over 100 car companies; by the 1930s, the U.S. had more than 400, yet only three major groups remained by the 1970s. Similarly, in Britain's Coventry region, the 1910s saw over 100 automakers, swelling to over 200 in the 1920s, before consolidating into just six groups by the 1960s. "Over more than a century of automotive history, we have always seen a pattern of rapid expansion followed by mergers and restructuring."He drew a parallel to China's current new-energy market. When he left FAW-Volkswagen in 2016, there were roughly 400 registered new-energy brands in China. Today, the brands selling more than 10,000 units a month can be "counted on two hands." "The trend we are experiencing today closely mirrors the trajectory of internal combustion engine vehicles in the U.S. and UK historically. It is an inevitability. A country does not need hundreds of car brands."He added, "A brand that hasn't navigated through an economic cycle isn't a true brand. International brands have weathered at least 10 financial and economic crises, from the Great Depression of the 1910s to today."Practical Lessons: You Only Get One Shot at PricingAddressing the operations he oversees, Liu took the opportunity to clarify a common misconception: Volkswagen in Anhui is not a single entity, but three. Volkswagen (China) Technology Co., Ltd. (VCTC) is the largest overseas R&D center outside Wolfsburg; Volkswagen Anhui Automobile Co., Ltd. handles manufacturing; and Volkswagen (Anhui) Digital Sales Service Co., Ltd. manages sales."Volkswagen is 'all in' China; our future lies here," he revealed, noting that the company has invested over 200 billion yuan in Hefei. Volkswagen Anhui is not just a manufacturing base; it ranks among China's top 20 exporters, and its R&D center serves both Volkswagens and global development needs.Volkswagen Anhui defines itself as a "smart pure EV new force under the Volkswagen brand"—focusing exclusively on intelligent electric vehicles and adopting a direct-sales and agency model. "Our level of intelligence is now in the first tier. The complaints that Volkswagen EVs were too laggy, or that navigation voice commands were poor—those issues have basically been resolved," Liu stated.Liu shared a hard-earned lesson on pricing from personal experience. The first model from Volkswagen Anhui, the ID. UNYX 06, suffered a strategic pricing error—an A-class SUV priced above 200,000 yuan. The company was forced to cut prices repeatedly. "Once you adjust the price once, customers start expecting a second and third cut," he explained.With the launch of the ID. UNYX 07, the team decided after internal debate to "get it right the first time." Following the new price announcement, the conversion rate from test drives to orders hit 82% in the first weekend—"basically, anyone who test drove it didn't hesitate." Buyers under 30 accounted for over 35% of sales, while female buyers neared 40%, achieving a strategy of younger demographics. Crucially, user behavior shifted fundamentally: instead of visiting a store before ordering, customers now place orders first, then visit to see the car."The sales curve for smart pure EV products is looking more and more like that of smartphones—it's a parabola. In this trend, you only get one chance to play your card. If you don't nail the pricing on the first try, it's hard to get a second chance from users," Liu said.Concluding his speech, Liu emphasized that returning to the fundamentals of marketing is the most urgent task. "What we lack most isn't flashy, far-fetched ideas, but basic reception quality and test drive quality." "If the foundation is not solid, the ground will shake," he said, quoting the phrase he uses most often internally.
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