Volkswagen Group invests 2.5 billion euros in China

The German car group intends to strengthen its position in the Chinese market, where it generates a third of its sales, with a major investment of 2.5 billion euros, the amount of which has been allocated in part to the expansion of its production center and internal innovation.

With some sales of electric vehicles down compared to 2023 – despite the good results recorded in the first quarter of 2024 -, Volkswagen it also saw its overall market share in China drop to 14% last year (compared to 18% in 2018). It is affiliated with a Chinese brand XPeng – which VW entered the capital in July 2023 – or even local players JAC (for sodium ion batteries), Horizon Robotics (for autonomous driving) or ThunderSoft (for infotainment), German car group wants to strengthen its position within the Middle Kingdom and compete with national manufacturers such as BYD on their own land thanks to strategy called “ In China, for China ». But not only.

VW is speeding up its China ambitions by billions

Having existed for over 40 years in China, Volkswagen has actually decided to invest 2.5 Billions of Euros to strengthen its presence in the country. An astronomical amount that will be allocated to the expansion of its production and innovation center in Hefei, the capital of Anhui province, with the aim ofincreasing its R&D capacity and funding the design of the two models designed in collaboration with XPeng for Chinese drivers. Since then, « by creating solutions designed to meet the specific needs of Chinese customers »VW plans« bring 30 products % fast » for this driver panel, as shown in the Linkedin post.

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Meanwhile, a local technology company Volkswagen China among the top developments is that of the first entry-level electric platform that should be ready by 2026. However, Oliver Blume, chairman of the board of directors of Volkswagenhe wanted to be careful in advertising or Frankfurter Allgemeine Zeitung that group « there should be no dream expectations » in China. So, « if we achieve the longest double-digit market share of a China market in full growth, this is already a very respectable goal », he said. And enough for the view of the jackpot placed on the table and Volkswagen ?