Volkswagen will be able to build 1 million electric vehicles (EV) a year in China in 2023; boosted by a new plant in east China’s Anhui Province, CEO of the Volkswagen Passenger Cars brand Ralf Brandstaetter told Nikkei on Wednesday.
A joint venture with China’s Anhui Jianghuai Automobile Co (JAC); the plant is expected to produce 300,000 electric cars a year, starting in 2023.
Together with production from two other joint venture plants; – one with FAW Group and one with SAIC Motor – this should bring total capacity to the 1 million mark, Brandstaetter said.
The German automaker has seen rapid growth in the sale of its ID series EVs in China; since its launch in March 2021.
Volkswagen’s ID series reported a 70,625 annual delivery despite missing its goal of selling 80,000 to 100,000 cars last year.
Regional COVID-19 outbreaks as well as chip-related issues are said to have contributed to the figures.
China’s EV market soared in 2021.
Total sales went up by 160 percent year on year to 3.52 million units, ranking first worldwide for seven consecutive years; the Ministry of Industry and Information Technology reported in January.
China’s red-hot NEV sector has attracted a growing number of domestic and overseas companies; including homegrown NIO and XPeng and U.S. leader Tesla; which reported strong sales in 2021 and are also expanding their manufacturing capacity in the country.