On April 11th, Volkswagen Group (China) announced that it will invest 2.5 billion euros to accelerate the transformation of its business in China. The group will further expand its production and innovation center in Hefei, while strengthening its local research and development capabilities. Volkswagen will also collaborate with XPeng Motors to produce two Volkswagen-branded vehicle models in Hefei. The first model will be a mid-size SUV, with plans for production to commence in 2026.

Volkswagen China Technology Company, a wholly-owned subsidiary of Volkswagen Group located in Hefei, will play a central role in implementing localization strategies. It will closely cooperate with Volkswagen's joint ventures in China and undertake core development tasks. The company is currently developing the group's first electric vehicle architecture designed specifically for the Chinese market, known as CMP. Starting from 2026, the group plans to develop at least four electric vehicle models targeting the compact entry-level market based on this platform.

Since 2017, Volkswagen Group has been implementing its electrification strategy in the Chinese market. In the same year, the group established its first joint venture dedicated to electric vehicles in Anhui Province, in partnership with JAC Motors. Volkswagen's presence in Hefei includes production, research, development, and procurement, and it is expanding to become a strategic innovation center that adheres to the "In China, for China" strategy.

Source: anhuinews.com