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Volkswagen to Pump $2.7bn Into China Site, Boost EV Output

The German automaker is also planning to roll out two new models as part of its tie-up with Chinese firm Xpeng

People walk past an ID. Store X showroom of SAIC Volkswagen in Chengdu, Sichuan province, China January 10, 2021. Picture taken January 10, 2021. REUTERS/Yilei Sun/File Photo Purchase Licensing Rights
People walk past an ID. Store X showroom of SAIC Volkswagen in Chengdu, Sichuan province, China, on January 10, 2021. Photo: Reuters


German auto giant Volkswagen plans to invest $2.68 billion to expand its production and innovation hub in the Chinese city of Hefei in Anhui Province.

Preparations are also being made for the production of the two Volkswagen brand models being developed together with Chinese partner XPENG to begin in 2026, it also announced on Thursday.


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Ralf Brandstaetter, Volkswagen Group’s management board member for China, said the Hefei site would help bring technologies to market around 30% faster as the carmaker boosts electric vehicle production there.

Volkswagen ceded its title of best-selling car brand in China to local EV manufacturer BYD in late 2022 and has announced a series of new models to electrify its portfolio in China as it battles to regain ground.


  • Reuters with additional editing by Sean O’Meara


Read more:

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Volkswagen Buys $700 Million Xpeng Stake to Lift China EV Share

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Volkswagen Says ‘Don’t Want to Give Up’ China EV Market



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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