Volkswagen Group plans to launch a brand new subbrand for electrical vehicles in China to assist the automaker reverse its sliding market share within the nation.

The subbrand will launch with the Cupra Tavascan full-electric SUV, a sibling mannequin to the VW ID5 and Skoda Enyaq Coupe iV. Its fashions might be focused at VW’s new rivals in China equivalent to Nio and BYD.

The Tavascan won’t be bought as a Cupra mannequin in China. As an alternative, the coupe-styled midsize SUV would be the first mannequin for a subbrand positioned as a life-style marque to attraction to youthful consumers, simply as Cupra is in Europe.

VW isn’t launching the Cupra model in China for sensible causes, a high-ranking supervisor advised Automotive Information Europe sister publication Automobilwoche.

“Establishing a very new model is way too pricey. We cannot try this,” mentioned the chief, who declined to be named as a result of he’s not licensed to talk publicly.

VW’s Jetta subbrand, which was launched in China as an entry-level marque in 2019, has failed to achieve traction. The group’s Skoda model additionally has not been profitable and is prone to be withdrawn from the Chinese language market. Each marques are languishing with a market share under 1 %.

The subbrand could have its headquarters in Anhui, the place the Tavascan might be inbuilt a just lately opened plant. Tavascan manufacturing will begin in December. The SUV might be exported to Europe.