VW invests €2bn in Chinese EV industry
Volkswagen Group is investing €2 billion to increase its stake in China’s EV industry. Half of that amount goes toward increasing VW’s share in JAC Volkswagen, its joint venture with Chinese EV manufacturer JAC, from 50% to 75%. VW is doing this by taking a 50% stake in JAG, JAC’s parent company. For the other half of the amount, VW is acquiring a 26% stake in Gotion High-Tech, an EV battery manufacturer. This makes VW the largest shareholder in the company.
The investment matches VW Group’s high ambitions for China’s EV market. In the next years, JAC VW plans to build an EV factory at Hefei and launch five EV models. From 2023, JAC VW expects to build EVs on VW’s Modular Electric Drive matrix, a.k.a. MEB. By 2025, Volkswagen expects to sell 1.5 million EVs in China. This figure comprises full-electric EVs (BEVs), plug-in hybrids (PHEVs) and fuel-cell EVs (FCEVs).