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Volkswagen to Invest $12 billion for New Energy Vehicles in China

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Published on : Nov 16, 2017

German automotive giants, Volkswagen AG, has announced that the company will be raising more than US$12 billion along with its partners in China to research and develop vehicles that can run efficiently on low- and zero-emission. China, currently the biggest market for automobiles, has shown its growing inclination towards electric cars and other vehicles driven by fuel that cause lower pollution.

Last year in September, VW had announced plans to manufacture electric segments of all 300 models the group currently sells across the world, chunking out a revenue of 20 billion euros until 2030. This announcement about a year later seems to be related with previous plans of the company, countering Ford Motor Co., as that company too has made extensive investments in China, foreseeing a healthy future.

40 New Electric Vehicles in the Pipeline

Volkswagen will be investing the amount over the course of now and year 2025, introducing as many as 40 new vehicles during the time frame, according to the revelation made by Jochem Heizmann, the China head of VW. The venture will be in association with Anhui Jianghuai Automobile Group, who will start producing the electric vehicles in the first two quarters of next year, with an estimation to start commercialization in the next two quarters of 2018.

A sum of 50 billion euros has been set aside by the German company to buy batteries run those electric vehicles. This year in May, the company was green-lighted by the Chinese government to collaborate with locally owned car manufacturers.