Volkswagen Group’s Chinese division Volkswagen Group China along with its Chinese partners plans to invest US$4.4 billion to enhance e-mobility in 2020. The investment will accelerate the Group’s electrification strategy in Chinese and neighboring markets. The production of vehicles based on the modular electric drive toolkit MEB in Anting (SAIC VOLKSWAGEN) and Foshan (FAW-Volkswagen) will begin in 2020. Both Volkswagen factories are designed for manufacturing all-electric cars.
Volkswagen Group plans to spend US$ 1.76 bn of this amount on e-mobility, including production, infrastructure, development, or research for electric cars. The investment by Volkswagen Group China & its partner in 2020 will also focus on optimizing its model portfolio, developing new mobility solutions, as well as making advancements in smart cities and autonomous driving.
Volkswagen Group China, by the end of 2019, will offer 14 electrified models, while the Group’s comprehensive electromobility offensive will launch in the coming year. In 2020, the production of all-electric cars on Volkswagen’s modular electric-drive toolkit MEB will start at Anting and Foshan facility. MEB-production will begin with a total capacity of 600,000 units per year. Finally, the Group will provide around 30 locally produced e-cars by 2025 while considering the local sales of e-cars.
In 2019, the Group has delivered a solid performance, with total cumulative sales over 42 million vehicles in the Chinese market since first arriving in the country. By October, the Group has delivered 3.34 million vehicles and increased its market share to 19.5% from 18.5% in 2018 in China. Volkswagen Group China is confident about the long-term potential of the Chinese auto sector.
In November 2019, Volkswagen had announced plans to invest US$66 billion in electrification by 2024. The German automaker wants to switch into electric, hybrid, and future connected vehicles around the world. The company is planning to introduce 75 all-electric models and around 60 hybrid vehicles over the next decade. The automaker has a fixed target to sell 26 million all-electric vehicles by 2029, as well as approximately six million hybrid vehicles to the customers. The company is also planning to hit new European carbon dioxide (CO2) emissions targets by the same year. New budget of Volkswagen focus on the future of the mobility sector around the globe.
About The Volkswagen Group: Wolfsburg based The Volkswagen Group, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The Volkswagen Group comprises of twelve global brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, Lamborghini, ŠKODA, Bentley, Bugatti, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its character and operates as an independent entity on the market. The group offers broad ranges of products, from motorcycles to small cars and luxury vehicles. The Volkswagen Group operates approximately 122 production plants in 20 European countries and 11 countries in the Americas, Asia, and Africa. Around 664,496 employees worldwide produce vehicles and work in auto-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries worldwide.
Volkswagen has always made affordable mobility solutions for millions of people. The company is transforming the mobility system with new electric drive, digital networking, and autonomous driving technology. Towards sustainable driving environment, the R&D team of company emphases on automobile clean, quiet, intelligent, and safe driving experience for future generations.
The Commercial Vehicles Business Area of Volkswagen Group primarily includes the activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, buses, heavy trucks and motorcycles, as well as genuine parts. The partnership between the MAN and Scania vehicle brands is coordinated within the TRATON GROUP. The Power Engineering Business Area of the company includes the large bore diesel engines, turbomachinery, special gear units, propulsion components, and testing systems businesses. The group produces approximately 44,000 vehicles each working day. The Volkswagen Group comprises of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division of the group includes the Passenger Cars, Commercial Vehicles, and Power Engineering business areas.
Besides auto mobility business, the Volkswagen Group also offers a wide range of financial services, including leasing, dealer and customer financing, banking and insurance activities, and fleet management.