Volkswagen explores new sales model for electric models in China

Last week, Volkswagen's joint venture with SAIC Motor opened its first showroom under this system in the eastern city of Hangzhou, according to a social media post. The store, named "ID. Store X", sells its ID. range of family cars.

The German automaker said on Wednesday that customers can order vehicles at a fixed price directly through the company website, phone app or from authorised dealers. The stores are invested and operated by selected dealers, not the automaker.

The dealers get a commission from vehicle sales and do not need to maintain the car inventory, Volkswagen said.

Traditionally automakers including Volkswagen, General Motors and Toyota Motor set the official price, but dealers are expected to keep an inventory of vehicles and often allowed to offer discounts or price them higher depending on the demand for the models.