Volkswagen Group plans to produce motors for electric vehicles at its transmission plant in the east China port city of Tianjin.
With an investment of 115 million yuan ($17 million), the factory will start producing motors in December 2018, according to the administrative office of Tianjin’s economic development zone.
The plant will build up to 120,000 electric motors at full production.
The project is part of Volkswagen’s plan to drastically ramp up EV production in China to meet tough sales quotas.
VW recently started to build a 5.1 billion yuan EV assembly plant with its joint venture partner, Jianghui Automobile Co., in the east China city of Hefei. The factory will have annual capacity of 100,000 vehicles. production will start late next year.
The German automaker’s partnerships with SAIC Motor Corp. and China FAW Group Corp. also plan to launch EV output in 2019.
Volkswagen aims to sell 400,000 EVs annually in China by 2020 and 1.5 million a year by 2025.