The Story:
Volkswagen announced today that the company will invest $11.8 billion by 2025 to build electric cars in China, the world’s largest auto market.
Important Because:
China is virtually in the driver’s seat in the global EV push as it seeks to curb a serious air pollution problem by, among other things, fostering a greener auto industry. The PRC is doing this by incrementally but quickly ramping up quotas for all types of green automobiles: pure EVs, plug-in hybrids and fuel-cell.
All petrol and diesel cars are to be banned by 2040, and every automaker needs to toe the line on the government’s quota for green car contribution to overall unit output if they want to stay operant in China.
While existing automakers in China scramble to meet the next quota level of 3 percent to 4 percent EV contribution to total output by 2019, it presents a huge opportunity for companies like Volkswagen, who have recently committed to a fully electrified future.
The Details:
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The European carmaker intends to launch 40 locally-produced vehicles in China, Jochem Heizmann, VW’s China chief executive, told reporters at the Guangzhou Auto Show.
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Production of electric vehicles will begin during the first half of next year with Volkswagen’s new joint venture partner, Anhui Jianghuai Automobile Group (JAC Motors)
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