The Chinese market has been dominated by Asian market players, owing to their extensive production capacities and reduced manufacturing costs. Volkswagen, however, has recently announced plans to build ~1 million electric vehicles a year in China, starting from 2023. The statement comes in recently after the announcement of the opening of a new manufacturing facility within the Anhui province in China, which is an initiative that has taken place through Volkswagen’s collaboration with China’s Anhui Jianghuai Automobile Co (JAC), first announced in 2019. The new factory is expected to produce a total of 300,000 electric vehicles every year, with production starting in 2023.
Volkswagen is currently in the process of extensively expanding its market presence within Asia – the company had announced joint ventures with FAW group and SAIC Motor, two of the biggest automobile manufacturers present within China. The ventures collectively are expected to have a production capacity of 1 million electric vehicles every year.
Volkswagen’s cumulative electric vehicle sales in 2021 added up to 70,625, ~ significantly less compared to the company’s sales target that was set at 80,000 – 100,000 EVs. However, with joint ventures now in place, Volkswagen has exhibited a change in their production strategy, which was previously focused on developing vehicles in Germany, and having distribution sectors in China. The new ventures in place now show a great potential for Volkswagen becoming a key player in the Chinese EV market in the coming years, as well as open opportunities for Chinese manufacturers in joint ventures with Volkswagen to enter into the European EV market as well.
You can reach to news at here