Volkswagen has said it can produce an electric vehicle entirely made in China for half the cost of doing so elsewhere, as the German automaker fights to reclaim its share in the world’s biggest market, reports the Financial Times. Europe’s largest carmaker said on Tuesday that, following a series of investments in the country, it could for the first time develop cars outside Germany, including testing and deploying new technologies such as assisted driving.
VW is preparing to release about 30 EV models in China over the next five years in a bet on localised research and development. The carmaker said that, compared with the 2023 production costs for EVs in Germany, the cost for some models in China had been reduced by as much as 50% due to supply chain efficiencies, including battery procurement, shorter development periods and lower labour costs.
The German group has invested billions in its innovation centre in Hefei, eastern China, where it has more than 100 advanced laboratories for testing software and hardware, alongside batteries and EV powertrains.