(Yicai) June 28 -- On the 40th anniversary of the establishment of their joint venture, Chinese carmaker SAIC Group and German automotive giant Volkswagen Group agreed to provide technical support to their JV for the development of five new energy vehicle models.

SAIC Volkswagen will introduce three plug-in hybrid electric cars and two pure electric vehicles to the Chinese market between 2026 and 2030, according to the technical cooperation agreements signed by SAIC and Volkswagen yesterday. The Shanghai-based firm will provide the electric platforms for the new models.

"We are fully committed to our electrification strategy with a clear roadmap," said Ralf Brandstätter, chief executive officer of Volkswagen Group China.

"In China's thriving and competitive EV market, we need to continue to strengthen our strategic cooperation with SAIC and promote the electrification of SAIC Volkswagen's product portfolio," Brandstätter noted. "Therefore, Volkswagen will continue to provide cutting-edge technology and innovative mobility solutions."

The Chinese automotive industry is completing the transformation from "following" to "running" to "leading," SAIC's Chairman Chen Hong said.

SAIC Volkswagen relied on technologies provided by Volkswagen in the past, while SAIC was mostly responsible for production and sales. However, with the rapid development of China's intelligentization and electrification, the Chinese side has begun to assume a more prominent role in terms of technologies.

Volkswagen's market share in China fell to 14 percent last year and 12 percent in the first five months of this year from 18 percent in 2018. Therefore, the German firm needs to enhance its cooperation with its Chinese partners if it wishes to cope with the fierce competition in the Chinese market.

Last month, SAIC signed a deal with Volkswagen's luxury car brand Audi to jointly build a new platform on which the pair would develop EVs, with the first one expected to hit the Chinese market next year.

SAIC invested nearly CNY150 billion (USD20.7 billion) in research and development in the past decade, registering over 26,000 patents. Its self-developed solid-state batteries will kick off mass production in 2026 and be equipped on models of its EV unit IM Motors by 2027.

Editor: Futura Costaglione