|Volkswagen Plans $12 Billion Electric-Car Blitz in China |
Volkswagen AG and its Chinese partners will jointly invest nearly $12 billion by 2025 in developing electric cars for the local market, VW’s China chief executive said.
That will enable the German auto group—which operates in China through joint ventures with the state-run SAIC Motor Corp. 600104 -0.86% and FAW Group Corp.—to release five electric-car models in China annually until 2025, or around 40 in all, Jochem Heizmann told reporters here Thursday.
The Guangzhou Auto Show opens to the public Saturday.
Some auto makers, both foreign and domestic, are scrambling to meet a Chinese government requirement that electric vehicles account for roughly 3% to 4% of their total output in 2019, but Mr. Heizmann said that won’t be a problem for VW.
With plans in place to have produced 400,000 EVs by 2020, its tougher target in its biggest market are stringent fuel-efficiency standards being introduced alongside the electric-vehicle mandate.
A new electric-car joint venture with a third Chinese auto maker, JAC Motors, will begin producing its first vehicle, a compact SUV, in the first half of 2018, Mr. Heizmann said.
VW is also starting a new Beijing-based company that will work with a number of local partners to develop mobility services for the company’s new generation of connected electric vehicles, he said.
Seeking to curb air pollution and nurture a domestic green-car industry, China is driving the global market by setting gradually escalating quotas for pure-electric cars, plug-in hybrids and fuel-cell cars.
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