VW's Hefei innovation center in fast lane
Volkswagen will further expand its production base in China to strengthen its R&D capabilities, and cooperate with local high-tech companies and car producers.
It will launch new electric models in the face of fierce competition.
It announced an investment of 2.5 billion euros (19.5 billion yuan) on Thursday to further develop its Hefei production and innovation center.
The company plans to produce two Volkswagen-branded electric models with its Chinese Partner Xpeng. Among them, the first will be a mid-sized SUV which is expected to go on sale in 2026.
"With Volkswagen producing electric vehicles in Hefei, it will be faster to apply new technologies to the market," said Ralf Brandstätter, CEO of Volkswagen Group (China).
In addition, VW announced last month that it will launch 11 new electric models by 2027, planning to offer more than 30 all-electric models in the Chinese market by 2030.
An artist's impression of the new R&D base of Volkswagen in Hefei, Anhui.
VW (China) Technology Co (VCTC), which is owned by Volkswagen Group and located in Hefei, is developing SAIC's first electric vehicle architecture (CMP) specifically for the Chinese market.
Being VW's largest research and development center outside of its headquarters in Germany, VCTC focuses on the development of intelligent networked vehicles in China.
VW launched its electrification strategy in the Chinese market as early as 2017, establishing its first joint venture in China, Volkswagen Anhui, together with JAC, which focused on electric vehicles.
VW has maintained its first position in China for years in terms of sales results, while BYD is closing in.
In 2023, VW delivered a total of 3.236 million vehicles in the Chinese market, compared to BYD's sales of 3.02 million, according to official data.
Eleven new energy models of VW are expected to be launched by 2027.
