Volkswagen‘s announcement on Thursday revealed plans to invest 2.5 billion euros ($2.68 billion) in China to enhance its production and innovation hub located in Hefei, Anhui Province.
Preparations are underway for the production of two Volkswagen brand models, developed in collaboration with Chinese partner XPENG, scheduled to commence in 2026.
Preparations are underway for the production of two Volkswagen brand models, developed in collaboration with Chinese partner XPENG, scheduled to commence in 2026.
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Ralf Brandstaetter, Volkswagen Group‘s management board member for China, highlighted the significance of the Hefei site, emphasizing its role in accelerating technology to market by approximately 30%, particularly in electric vehicle production.
The move comes as Volkswagen aims to regain market share in China, relinquishing its title of best-selling car brand to local electric vehicle manufacturer BYD in late 2022. The company has unveiled plans to electrify its product lineup in China with a series of new models.
