Volkswagen is strengthening its presence in China with major investments

Volkswagen is strengthening its presence in China with major investments


Volkswagen AG (OTC:VWAGY) reportedly revealed plans to allocate 2.5 billion euros to the expansion of its manufacturing and innovation center in Hefei, Anhui province, China.

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The investment aims to strengthen the presence of the company in this region and will focus on industries and innovations.

As reported by Reuters, Volkswagen and its Chinese partner XPeng Inc (NYSE:XPEV) are preparing to start production of two brands in 2026.

The partnership underscores Volkswagen’s commitment to expanding its range of electric vehicles in China, an important market for the automotive industry.

Ralf Brandstaettermember of the Management Board of Volkswagen Group of China, emphasized that the improvements made at the Hefei site will enable the rapid implementation of the technology.

Volkswagen’s investment comes at a time of fierce competition in China’s electric car market. It has lost its position as the best-selling car brand for the domestic electric car manufacturer BYD Co., Ltd. (OTC:BYDDF) by the end of 2022, Volkswagen aims to revive its portfolio with new electric models to regain its competitive advantage, the report said.

Volkswagen stock price

Shares of VWAGY traded down 1.21% to $15.53 at the close on Thursday.

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