German automaker Volkswagen and Shanghai-based SAIC Motor Corporation are to jointly work to boost research and development, and production of electric cars in China.
Volkswagen group and its joint ventures would be investing up to $25 billion in China by 2019. Under the agreement, Volkswagen is to help expand the main plant of its joint venture with SAIC, Shanghai Volkswagen (SVW), in Anting.
A report published by Business Insider states that Volkswagen will be localizing more than 15 electric vehicle models in China over the next four years. The models to be localized include plug-in hybrids and fully electric vehicles.
As part of the agreement, Volkswagen also intends to produce a new C-segment model from its portfolio at the Anting plant beginning 2016.
Also, the company plans to roll out a new electric vehicle based on its bestselling Chinese market entrant Lavida, over the next four years.
Research on fuel cells and plug-in hybrid vehicles is also to be intensified as part of the initiative.
In 2014, Volkswagen Group, along with SVG and another joint venture FAW-Volkswagen, rolled out 3.7 million vehicles in China. It represented a 12.4 percent increase over the previous year, Business Insider has reported.
Ajith Kumar S