The Volkswagen Group is expanding its successful business relationships in China with a particular focus on e-mobility.

As part of the 5^th German-Chinese government consultations, the Volkswagen Group China signed letters of intent with a long-time joint-venture partner, the FAW Group, and with the China Intelligent and Connected Vehicles (Beijing) Research Institute Co. Ltd. (ICV). The agreements cover the areas of e-mobility, connectivity, mobility services and autonomous driving.

A day earlier, the Volkswagen Group China joined the automakers JAC and SEAT in signing letters of intent in which the three underscored their commitment to e-mobility. (Earlier post.) The aim of the partnerships is to draw on the support of the Chinese partners and systematically and vigorously to fuel the company’s far-reaching electro-offensive and to apply new technologies.

The car of the future will not just be powered by electricity. It will also be digitally connected and will increasingly drive itself. This will prevent accidents, reduce traffic congestion and drastically reduce noise pollution and exhaust emissions. By expanding these partnerships, the Volkswagen Group plans to strengthen its position in China’s critically important market.

—Dr. Herbert Diess, the CEO of Volkswagen AG and Chairman of the Board of Management of the Volkswagen Passenger Car brand

The new partnerships represent additional milestones in our electro-offensive in the Chinese market. Working with our new and existing joint venture partners, we are developing an electric, smart and sustainable future for individual mobility for our customers in China.

—Professor Jochem Heizmann, a member of the Board of Management of Volkswagen AG and the President and CEO of Volkswagen Group China

The partnerships involve such work as developing and producing components for new energy vehicles (NEV), expanding vehicle connectivity and automotive data services and enhancing autonomous driving. Other plans include developing a national battery-charging infrastructure and all business activities that are related to it.

The People’s Republic of China is the world’s largest e-mobility market. As part of its far-reaching electrification offensive “Roadmap E,” the Volkswagen Group is planning to deliver about 1.5 million new energy vehicles (NEVs) to customers in 2025. Over the next seven to eight years, the company intends to introduce about 40 new, locally produced totally electric vehicles and plug-in hybrids made by the brands Volkswagen, Audi, ŠKODA, SEAT and a new joint venture with JAC.

Through 2022, Volkswagen and its partners in China will invest about €15 billion in future fields such as e-mobility, autonomous driving, digitalization and new mobility services. In addition to investments, this will also include expenses for research and development for new technologies and new mobility projects.

One of the major undertakings in efforts to shape the future of mobility involves the introduction of future technologies into the series production of the Volkswagen brand’s I.D. family. The fully electric, fully connected I.D. models will begin to hit roads in Europe, China and North America starting in 2020. The effort has been started by the compact I.D., a vehicle with a range of up 600 kilometers. The I.D. family will also be ready for automated driving.