Volkswagen and its Chinese partners will pour $17.5 billion into electric vehicles in the country over the next four years as competition intensifies to sell low carbon cars in the world’s largest auto market, reported the Financial Times.
The group on Monday said the investment, made with Chinese joint venture partners SAIC Motor, FAW Group and JAC Motors, will be used to design and manufacture 15 electrified models for the Beijing market by 2025.
The announcement comes on top of VW’s pledged %38.5 billion for a global transition away from fuel-burning engines, as the Wolfsburg-based group man oeuvres to take on Tesla and become the world’s largest manufacturer of electric vehicles. Success in China, the world’s biggest market for both electric vehicles and passenger cars, will be crucial for any carmaker hoping to lead global sales.
In October, VW will begin production in two new Chinese factories dedicated to electric vehicles, with a combined maximum capacity of 600,000 units per year, it said.