German companies increasingly attracted to China's electric vehicle market.

author: FutureCar Staff    

German enterprises are increasing their investment in China's new energy vehicle (NEV) industry to take advantage of the market potential in the country with a population of 1.4 billion. China has experienced a significant rise in NEV production and sales this year, with output up 40 percent and sales up 41.7 percent compared to the previous year.

Hefei, the capital of Anhui Province in eastern China, is a hub for NEV enterprises such as Volkswagen Anhui, NIO, and BYD. The city is home to over 500 industrial chain enterprises and employs approximately 100,000 people. Hefei aims to become a major NEV industrial cluster in China and globally, with a cumulative output of 230,000 NEVs produced in the city from January to May this year.

Volkswagen Anhui, a majority-owned joint venture for all-electric vehicles in China, is a key player in the German carmaker's e-mobility push and decarbonization strategy. With a planned investment of 23.1 billion yuan, Volkswagen Anhui is rapidly building a new NEV hub in Hefei, covering the complete value chain of R&D, manufacturing, sales, and services. The company has received preferential policies from the government and is collaborating with Hefei University and the local government to cultivate high-skilled NEV professionals.

In addition to Volkswagen, Continental AG's Tire Division is also expanding its presence in Hefei. The company plans to speed up the construction of its tire factory in Hefei and explore follow-up projects in auto electronics and R&D centers. Since its establishment in Hefei in 2011, Continental has achieved significant output and value in tire production.

Volkswagen and Continental are just two examples of German enterprises showing interest in investing in Anhui. The China-Germany Friendship Association has organized visits and discussions between well-known German companies such as Volkswagen, BMW, and Mercedes-Benz, and officials from Anhui. The association aims to promote further cooperation between German enterprises and Anhui in various areas, including NEVs, vocational education, and youth exchanges.

Germany, as a world-renowned automobile manufacturer, stands to benefit from cooperation with China in terms of market access, technology innovation, and talent cultivation. China has been Germany's largest trading partner for seven years, with thousands of German companies active in China and vice versa, according to the German-Chinese Business Association.

FutureCar Staff