Though it is still the leading foreign group operating in the country, Volkswagen has seen its sales droop as local brands' rise -- a fate that has also befallen its fellow German carmakers BMW and Mercedes.

The group, which encompasses ten brands including VW, Audi and Porsche, sold 644,100 vehicles in China in the first quarter of 2025, a drop of 7.1 percent year-on-year.

To counter that decline, Volkswagen plans to launch over 20 electric and hybrid models in the country by 2027, the group's China head Ralf Brandstatter said at a press conference on Tuesday.

"Our biggest push in EV history begins here," he said.

On the eve of the opening of massive industry show Auto Shanghai, Volkswagen presented three high-tech prototypes.

The two SUVs and one saloon model were developed for China with the group's local partners, industrial giants FAW, SAIC and JAC.

"Our industry is at a turning point," CEO Oliver Blume said Tuesday, noting a "highly competitive market" and "rising trade barriers" as major challenges.

Blume said the group had adjusted its China strategy around two years ago, and that progress had been made quicker than expected.

Its work in the China market was "another step towards becoming the global tech driver for the automotive industry," he said.

The group's premium Audi brand on Tuesday presented an electric model that promises a range of 770 kilometres.

The first series model from its separate AUDI brand was also revealed.

Complete with multiple AI functions digitally specific to China, it is aimed at "technology-focused premium" Chinese customers.

Volkswagen also presented a new generation of driver assistance "specifically designed for the complex traffic conditions in China".

The Level 2++ technology, which allows the driver to temporarily take their eyes off the road, will first roll out later this year.

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Volkswagen