Chinese regulators have given the go-ahead for Volkswagen to form a joint venture with local company Anhui Jianghuai Automobile Group (JAC Motor) to produce electric vehicles in the nation.
Reuters says that China’s top state planner, the National Development and Reform Commission, has given approval for 100,000 fully-electric vehicles to be built by VW-JAC Motor in a deal worth approximately 5.1 billion yuan ($740 million) annually.
Volkswagen already has two joint ventures in China, one with China FAW Group Corp and another with SAIC Motor. It says some final details need to be completed before it can sign its joint venture with JAC Motor but the latest deal forms part of the brand’s rapid push to become the market leader for electric vehicles.
According to VW, it wants to sell 400,000 all-electric and plug-in hybrid vehicles in China by 2020 in an attempt to meet strict local fuel economy and emissions regulations.
PHOTO GALLERY
