Emily Feng
Volkswagen will invest €10bn ($11.8bn) to develop new energy vehicles within China by 2025, its China head announced Thursday.
The European carmaker will launch 40 locally-produced vehicles in China, Jochem Heizmann told reporters at the Guangzhou Auto Show. Production of electric vehicles will begin during the first half of next year with Volkswagen’s new joint venture partner, Anhui Jianghuai Automobile Group (JAC Motors).
The move comes as China moves to require automakers to reach a certain production quota of electric vehicles next year in order to operate in the country. A delayed carbon trading scheme would also require car manufacturers to buy and sell carbon credits tied to the production of electric vehicles.
China has been pushing for low emissions vehicles and is planning an eventual ban on all petrol and diesel vehicles by 2040. In preparation, foreign automakers have announced major electric vehicle production plans within China.
Volkswagen forged its venture with state-owned JAC Motors this May with the express purpose of manufacturing electric cars and has previously stated it plans to sell 1m EVs by 2025.
In August, Renault and Nissan joined up with longtime partner Dongfeng Motor Corporation to form a new electric vehicle joint venture.
Last week, Ford announced that it would invest $753m in China to manufacture and sell electric vehicles with local partner Anhui Zotye Automobile.