The Volkswagen Joint Undertaking with JAC Motors plans to invest 5.06 billion yuan ($ 750.8 million) in a new electric car factory in Hefei, China, according to local authorities.
A document posted online reveals that JAC Volkswagen has received approval to build a plant that can produce 100,000 electric cars a year, Reuters reported. A spokesman confirmed these plans, stating that environmental approval meant "organized progress of the project".
JAC Volkswagen's plans to build 100,000 electric vehicles in China per year were first known in May 2017, but with this news we already know where the factory will be located. JAC Volkswagen also entered R & D center in Hefei in December. Another report by Reuters earlier this month said Volkswagen is considering buying a "big stake" in JAC Motors.
JAC Volkswagen will release its first electric car SU20 on the E20X later this year. This car is expected to cost around 120,000 yuan ($ 19,000) after incentives.
The Volkswagen Group's big plans for electric cars include big ambitions in China. The company recently announced that it plans to produce 22 million electric vehicles by 2028, with more than half of these vehicles (11.6 million) being produced in China.
He will rely on his three Chinese joint ventures – FAW-Volkswagen, SAIC VOLKSWAGEN and JAC Volkswagen – to reach these figures. Volkswagen Group plans to offer 14 electric cars in the country by the end of this year.
In one of these other joint ventures, FAW-Volkswagen said last year it would expand Foshan's "megafabrica" to build more electric vehicles. VW said the factory will electrify vehicles on the current platform but will add its MEB electric platform to the production line there by 2020 as it plans to make EV more affordable.
Volkswagen introduced its full-range electromobile SUV concept in full. ROOMZZ before the Shanghai Motor Show this month. The company said it would release a production version of the Jeep in 2021 and will first come to the Chinese market.
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