German automaker Volkswagen has announced that it will invest €1 billion in a new electric vehicle development center in China, which is the world’s largest automotive market. The company, which has a strong presence in China, said the new center will be a place of innovation and supply of fully connected electric vehicles and will be located in the city of Heifei.
Electric vehicles account for one in four cars sold in China, and although local brands lead sales, Volkswagen is racing to increase its market share in the country. The center will have more than 2,000 employees and will launch in 2024 under the name “100% TechCo.” The company expects the new partnership to accelerate the time to market for its vehicles in China by aligning with the desires of Chinese consumers.
The company’s president will be Marcus Hafkemeyer, Volkswagen Group’s Chief Technology Officer in China. The announcement was made during the Shanghai auto show, which was the first show held since the end of the COVID pandemic restrictions. Volkswagen has stated that this step is key to their strategy in China, as it will allow them to quickly adapt to the needs of the Chinese market and increase their presence in the growing electric vehicle market.