CHINA is Volkswagen Group’s most important market. It’s expected then for the auto conglomerate to further grow its business in the country.
Volkswagen Group China, SEAT and Chinese auto manufacturer JAC, forming the joint venture JAC Volkswagen, announced they are paving the way for SEAT’s entry strategy for China. The companies said the Spanish brand aims to enter the Chinese market in the next two to three years.
VW disclosed an agreement has now been reached in Martorell, Spain, during a visit by a delegation of Chinese government officials from the Anhui province — where the headquarters of JAC Volkswagen is located.
JAC Volkswagen focuses on the development, production and marketing of fully electric vehicles.
VW said China plays a central role in the global transformation and decarbonization program of the entire group. It noted that by 2028 more than half of the 22 million electric cars planned by the Group will be produced in China. The group aims to deliver around 1.5 million electrified vehicles, most of them fully electric, to customers by 2025.
From left: JAC Chairman An Jin, Anhui province Governor Li Jinbin, Hefei Mayor Ling Yun, Volkswagen Group China CEO Dr. Stephan Wöllenstein, Volkswagen Group CEO Dr. Herbert Diess and Mobility Asia CEO Weiming Soh.
“In the world’s largest market for electric mobility, the close cooperation between SEAT and JAC will allow us to create synergies, which will significantly increase our market coverage. Notably, the smaller electric car segment is growing rapidly and offers a lot of potential,” said Herbert Diess, CEO of Volkswagen AG and chairman of the board of directors at SEAT.
In a related development, VW said JAC Volkswagen and SEAT have also entered into a “smart city” partnership with the city of Hefei in Anhui. The city, planned to be fully connected, will pilot smart mobility solutions.
An agreement was signed by Volkswagen Group China and its associated mobility company Mobility Asia, as well as JAC and the government of Hefei, VW said.
It added the program will allow Volkswagen to test new technologies, business models and products in a connected smart city.
The VW Group is composed of Volkswagen Passenger Cars, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. In 2018, the group sold 10.8 million vehicles worldwide.
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