German auto giant Volkswagen on Monday announced an additional investment of around 15 billion euros with its joint ventures by 2024 to expand into electrics in China, the world’s largest auto market.
There is talk of locally producing 15 new fully electric vehicles by 2025, which will represent 35% of the product portfolio in the country, according to a statement.
The Wolfsburg group, of which China represents 40% of sales, will invest alongside its joint ventures SAIC, FAW-Volkswagen and JAC Volkswagen, in which the German has already invested a billion euros in May to take some the majority.
This investment is in addition to the 33 billion euros already committed by the German in the electric car in the world over the same period.
Production of future electric models will start in October at two new factories using modular platforms, capable of producing multiple models, with a combined capacity of up to 600,000 units per year.
This announcement comes a few days after China, the world’s largest polluter, ahead of the United States, through the voice of its President Xi Jinping created a surprise by committing to carbon neutrality by 2060.
“Volkswagen is committed to being an active partner” towards this goal, VW China boss Stephan Wöllenstein said in the statement.
In May, VW invested 1.1 billion euros to acquire a stake in a local battery manufacturer, Gotion High-Tech.
China’s auto industry is showing signs of recovery lately after the collapse of individual car sales by nearly 80% in February, when consumers were forced to stay at home and the economy nearly came to a halt to curb the epidemic linked to the new coronavirus.
Electric cars are one of the main attractions at the Beijing Motor Show which opened on Saturday, with China aiming to increase the share of electric to 25% by 2025.