VW’s C Coupé GTE study may not preview the next-generation Phaeton as everyone thought, unless VW plans a radical change of its flagship sedan’s formula.

According to a new report, VW will build the C Coupé GTE plug-in hybrid concept with little modifications, with the production model to act as the flagship model of the brand’s low-emissions lineup in China.

The government offers incentives for so-called New Energy Vehicles (NEVs) in China and VW is expanding its range of alternative-powertrain models to get a piece of the pie. Authorities want to reduce air pollution in Chinese cities and one way to do it is to subsidize sales of vehicles that can drive at least 50 km (31 miles) in zero-emissions mode.

NEVs can be battery-powered electric vehicles, plug-in hybrids or fuel cell vehicles. The production version of the C Coupé GTE will become one of more than 15 locally produced VW Group low-emissions vehicles in China, alongside the Passat GTE and Audi A6 L e-tron, which will go into production next year.

The C in the name of the VW study is a reference to the car’s size, which in VW China’s nomenclature qualifies for the upper C-segment, the class of cars similar to the Audi A6 L.

“The C Coupe GTE not only provides a clear preview of the production vehicle to come but we have also developed the sports sedan exclusively for the Chinese market,” VW brand development chief Heinz-Jakob Neusser was quoted as saying by Autonews Europe.

The VW C Coupé GTE is a little more than 5,070mm (199.6in) long, which makes it slightly shorter than the Phaeton. The study is based on VW Group’s MLB platform which also underpins the Audi A6 L.

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