(Yicai Global) Nov. 20 -- Volkswagen AG's [XETRA:VOW] Chinese joint venture with Anhui Jianghuai Automobile Group Corp. [SHA:600418] plans to directly invest more than EUR10 billion (USD11.7 billion) in the new energy vehicle (NEV) sector by 2025 to develop and produce pure-electric vehicles (EV) and plug-in hybrid vehicles (PHV) among others for the local market for the Chinese market.
The firm will introduce 40 new energy vehicles over the next seven to eight years and aims to sell 400,000 new energy vehicles annually in China by 2020, increasing to 1.5 million per year by 2025.
VW and Anhui Jianghuai established their joint venture in 2017 and plans to put all-electric vehicles into production in the first half of next year before sales commence in the second half. Volkswagen aims to sell 3 million all-electric vehicles worldwide by 2025, of which 1.5 million will be sold in China.
Volkswagen enjoys the largest sales of new cars in China and has outpaced other carmakers such as US carmaker General Motors Corp. General Motors Co. [NYSE:GM]. China will introduce regulations stipulating that NEVs must be produced and sold in 2019, making it a top priority for large foreign auto companies especially.