VW aims to lead the world in NEVs

Volkswagen aims to be the No. 1 brand in the booming new energy vehicle market, planning five new electric models and localized production in China by 2020, the company said on Monday.

China is the world's largest NEV market, with around 1.26 million cars sold in 2018, compared with just over 360,000 in the United States. The sector shows vigorous growth and huge potential, analysts say.

Volkswagen’s new fully-electric offerings will include versions of its popular models such as the Lavida, Golf and Bora, as well as a racing car. 

“Our vision is clear ... that we want to be the No. 1 brand in NEVs,” Stephan Wollenstein, CEO of Volkswagen Passenger Cars China, said at a conference in Zhuhai city, in Guangdong Province.

The new models represent “a new phase” of Volkswagen’s NEV strategy in China, meeting consumers’ diversified demands covering SUVs, sedans and NEVs, said Volkswagen.

By 2020, Volkswagen will have about 10 NEV models in China, with a planned production of 300,000 and an investment of 17 billion yuan (US$2.54 billion) in a new plant in Shanghai.

China is leading the global shift to NEVs. 

About 52,900 NEV cars were sold in February in China, up 53.6 percent year on year, the China Association of Automobile Manufacturers said recently.

China has intensified efforts to promote the use of NEVs to ease pressure on the environment, offering tax exemptions and discounts on car purchases. The government also encouraged carmakers to build more NEV factories and improve technology.

Besides Volkswagen, giants like BMW and Tesla have invested heavily on NEV in China.

Tesla, the California-based electric vehicle maker, has announced a new plant in Shanghai, with an investment of over 50 billion yuan (US$7.45 billion). It’s the largest foreign-funded manufacturing project in Shanghai's history, and Tesla's first plant outside the United States. 

Tesla CEO Elon Musk also said recently that the new Model Y SUV will be produced in the Shanghai new plant.

BMW has invested heavily on charging facilities nationwide in China, a key step to boost NEV sales.

Among VW's five new models, the e-Lavida is developed and sold by the SAIC-Volkswagen Sales Co, one of the VW's major joint ventures in China.

With a special battery and energy management system, the e-Lavida has a range of 278 kilometers and a top speed of 150 kilometers per hour. It can be charged to 80 percent of battery capacity within 40 minutes.