Volkswagen AG has announced it is making two new-energy vehicle investments in China worth more than €2 billion ($2.2 billion) as it taps into the Asian country’s growing market, reported Caixin.
The German automaker said in a statement Friday that it plans to acquire a 50% stake in its Chinese electric-vehicle partner, Anhui Jianghuai Automobile Group. Volkswagen also plans to increase holdings of its Chinese joint venture with the automaker, called JAC Volkswagen, according to the statement. It plans to invest around €1 billion in each of the deals.
The announcement followed news on Thursday that Volkswagen had signed a deal to take a 26.5% stake in Guoxuan High-Tech Co. Ltd., making it the Chinese electric-vehicle battery-maker’s largest shareholder. That deal will cost Volkswagen about €1.1 billion and is set to be completed by the end of this year, according to its Friday statement.
The moves signal that Volkswagen has increased its bet on China’s electric-vehicle market. The country is also the world’s largest auto market. Volkswagen previously said that it aims to deliver 1.5 million new-energy vehicles to Chinese consumers by 2025.