- VW is keen to strengthen its status as the largest foreign automaker in China
- Comes at a time when the Coronavirus epidemic has hugely affected sales
Volkswagen Group told reporters about its plans to invest about 2.1 billion Euros in two Chinese electric vehicle manufacturers. With this, the brand aims to get a head-start in the world’s largest auto market at a time when global-rivals eagerly want to have a slice of the electric-vehicle pie.
While VW plans to invest one billion Euros in Jianghuai Automobile Group (JAC Motors), the joint venture will spawn five electric models by 2025. Likewise, VW will also invest 1.1 billion Euros in Guoxuan high-tech, a Chinese EV battery manufacturer.
As both Chinese companies are located in the city of Hefei, they are expected to work in close collaboration with each other to collectively churn out EVs for the Chinese market. With this, Volkswagen Group has made it clear that they want to be the largest foreign car maker in China. It was just last year that Tesla (US electric car maker) became the first foreign automaker to make inroads in the Chinese market with a solely-owned car plant.
