Volkswagen has "caught up" in key capabilities in China's fast-accelerating electric and intelligent vehicle transition, as the German automaker enters what it calls a "delivery mode" year.

"Chinese market has changed and a lot of brands are playing catch-ups," said Volkswagen Passenger Cars Brand CEO Thomas Schaefer on Tuesday, three days ahead of the 2026 Beijing auto show.

"I think what we are presenting here is clear proof that we have caught up. We are on a clear trajectory," he said.

The comments reflect Volkswagen's renewed confidence in its China strategy, as the company moves from restructuring to execution in one of the world's most competitive automotive markets.

In 2026 alone, the company plans to launch 13 new energy vehicles in the country, which has long been its largest market, as part of a broader rollout of more than 30 models by 2029.

Robert Cisek, Volkswagen Passenger Cars Brand China CEO, said the transformation has been driven by a structural shift toward localized development, with China now functioning as a core engineering base rather than solely a market.

At the center of this shift is the Volkswagen China Technology Company in Hefei, the group's largest R&D hub outside Germany, employing more than 3,000 engineers.

Cisek highlighted the China Electronic Architecture, developed jointly with CARIAD China and local partners including Xpeng, as a key milestone in closing the gap in software-defined vehicle capabilities.

Completed in 18 months, the CEA system serves as a centralized digital backbone for Volkswagen's next-generation vehicles in China, reducing system complexity and enabling faster over-the-air software iteration.

Volkswagen said the shift to software-defined architecture and localized development has reduced product development cycles in China by around 30 percent.

Cisek said the company's competitiveness in China is now increasingly defined by software capability, ecosystem integration and development speed, rather than hardware alone.

"China is the innovation powerhouse and the pace is just accelerating. So it is going to be decisive to compete through speed, software capabilities, but also cost efficiency. With our setup we are well prepared," he said.

Confronted with the intensifying competition in China, Volkswagen executives said the company's long-term positioning remains anchored in its brand strength, industrial scale and financial resilience, including continued profitability from its internal combustion engine business.

"When things become confusing, stable brands give stability. Volkswagen brand always stands for family, stability and trust," said Schaefer.