Volkswagen Group will build cars based on its MEB electric platform in Hefei in east China’s Anhui province after investing 1 billion euros ($1.21 billion) to increase its shareholding in Volkswagen (Anhui), formerly known as JAC Volkswagen.
Production of the EVs will begin in 2023, VW China said in a statement. With the expansion, which is due to be completed at the end of 2022, the annual production capacity at the site will rise to 350,000 vehicles.
With its 75 percent stake, VW Group said it will take over management control at Volkswagen (Anhui).
VW Group did not disclose details on products to be built at the Hefei plant.
VW Group and JAC also unveiled an R&D center in Hefei. The center will employ about 500 people by 2025, according to VW Group China.
The automaker also runs China joint ventures with SAIC Motor and FAW Group.
VW Group China said last month that production of the first MEB-based product for sale in China, the ID4 electric crossover, began at SAIC-VW’s Shanghai plant and FAW-VW’s factory in the south China city of Foshan. The two plants can each produce up to 300,000 vehicles a year.