With China being the world’s largest automotive market, Volkswagen is investing heavily to ensure it owns a large slice of the electric vehicle share with a €2bn stake in the country’s biggest EV OEMs.
The German automaker announced that it has doubled its original €1bn investment to intensify its e-mobility activity in China, where it will now own a 50% stake in state-owned JAC Motors, and also increase its joint venture to build EVs with JAC to 75%.
The JV plans to upgrade the manufacturing facilities at JAC and then produce a number of electric vehicles for the Chinese market using its modular MEB platform.
VW has also acquired a 26% stake in battery manufacturer Gotion High-Tech, becoming the company’s largest shareholder. By doing so Volkswagen will become the first global automaker to invest directly in a Chinese battery supplier, and will enable VW to get a greater knowledge base in the battery field.
Gotion maintains various current and future projects over the entire battery value chain from sourcing, development and production to recycling. Gotion is in the process of becoming a certified Volkswagen Group battery supplier in China, including supplies for local MEB vehicles.
“Volkswagen takes a strategic role in a state-owned company for the first time, as well as investing direct in a Chinese battery supplier. These investments shape the character of Volkswagen in China, making it a more localized, more sustainability-focused mobility company. By opening up the market, China is giving Volkswagen new business opportunities,” said Dr Stephan Wöllenstein, CEO of Volkswagen Group China.
Volkswagen Group China has already outlined its route to becoming a net carbon-neutral company. In 2025, around 1.5 million NEVs are planned for delivery to customers across the country. China is the world´s biggest market for e-mobility.