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- Volkswagen's growth strategy in China : a critical analysisPublication . Heerwagen, Timon; Flórido, JoãoThis dissertation critically examines Volkswagen's growth strategy in the Chinese automotive market, focusing on its localization efforts and strategic alliances to regain competitiveness in the rapidly evolving electric vehicle and intelligent connected vehicle segments. Against the backdrop of intensified competition from domestic automakers and shifting regulatory landscapes, Volkswagen faces significant challenges due to technological lags and cultural rigidities. The study aims to identify the critical factors for Volkswagen to regain market share and achieve sustainable growth in China. A qualitative methodology was adopted, leveraging expert interviews and secondary data, including industry reports and company publications. The findings reveal that Volkswagen's reliance on strategic partnerships, such as collaborations with XPENG and Horizon Robotics, provides essential short-term access to advanced technologies and facilitates adaptation to local market demands. However, the thesis underscores that these alliances must be complemented by internal capability building, cultural transformation, and focused product strategies for long-term sustainability. The analysis highlights the importance of localized innovation, cost competitiveness, and rapid development cycles as key pillars of Volkswagen's strategy. The "In China, For China" initiative is a decisive step towards market alignment, but its success depends on empowering local operations and fostering a customer-centric culture. Ultimately, this dissertation concludes that while strategic alliances are instrumental for Volkswagen's immediate survival, long-term success hinges on integrating these efforts with broader organizational transformation.