Volkswagen is investing heavily in Hefei

Volkswagen is investing around 2.5 billion euros in production and development in China. (Photo: Volkswagen)

In addition to expanding development capabilities, the money will also go into the production of two new car models that are currently being developed by Chinese partner Xpeng. A corresponding mid-range SUV is scheduled to be produced from 2026. By 2030 Volkswagen has set a goal of putting more than 30 electric models of its brands on the road in China. This plays an important role Volkswagen China Technology Company (VCTC) in Hefei, which, in cooperation with local joint venture partners, undertakes major development tasks such as the development of China-specific electrical architecture. According to this China Main Forum (CMP), at least four models of the compact electric class will be created from 2026.

“With our ‘in China for China’ strategy, we have a strong plan and continue to accelerate the restructuring of our business. We are focusing on more customer focus, more speed and more internal development.explains Ralf Brandstätter, Member of the Board of Management of Volkswagen AG China. “The new production and development center in Hefei will bring the technology to market maturity nearly 30 percent faster in the future. The additional investment in this area underscores our ambition to rapidly expand our in-house innovation strength.

A year ago, Volkswagen announced that it would invest one billion euros in development capacity in Hefei. As a company spokesperson told him Handelsblatt he said the new investment announced should be seen as an addition to the activities already announced.

The role that the Chinese market plays for Volkswagen is huge: almost 50 million customers drive a car from the group’s brand, with a national dealer network of 160 models available from Audi, Porsche, Skoda, Volkswagen and Co. includes more than 3,500 traders. . The production network that Volkswagen maintains with local partners such as SAIC and FAW includes 39 plants. Volkswagen receives technological support from technology companies such as Horizon Robotics (autonomous driving functions), Thundersoft (infotainment) and ARK (experience user). With 90,000 employees, Volkswagen is the largest European employer in China.