German companies increasingly fascinated by China's electric vehicle market

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【Summary】German enterprises are increasingly investing in China's new energy vehicle (NEV) market, recognizing the potential of the country with its large population. China has seen a significant increase in NEV production and sales, with output and sales both rising by over 40% from the previous year. Hefei, in Anhui Province, is becoming a major NEV industrial cluster, attracting companies like Volkswagen and Continental to invest in the city.

FutureCar Staff Aug 31, 2023 6:48 AM PT

German companies increasingly fascinated by China's electric vehicle market

German enterprises are increasing their investment in China's new energy vehicle (NEV) industry to take advantage of the country's market potential. China has experienced a significant rise in NEV production and sales this year, with output and sales up 40 percent and 41.7 percent respectively compared to last year. Hefei, the capital of Anhui Province, is home to several NEV enterprises and is striving to become a major NEV industrial cluster in China and globally.

Volkswagen Anhui, Volkswagen Group's first majority-owned joint venture for all-electric vehicles in China, is leading the way in NEV investment. With a planned investment of 23.1 billion yuan, Volkswagen Anhui is building a new NEV hub in Hefei, covering R&D, manufacturing, sales, and services. The company has praised the government's support and innovative policies, which have facilitated the project's rapid progress and talent recruitment.

In addition to Volkswagen, Continental AG is also expanding its presence in Hefei. The company plans to accelerate the construction of its tire factory and explore follow-up projects such as auto electronics and R&D centers. Continental AG has been operating in Hefei since 2011 and has achieved significant output and value in the region.

German enterprises, including Volkswagen and Continental, have shown increasing interest in investing in Anhui. The China-Germany Friendship Association has facilitated discussions and cooperation between German companies and Anhui officials. The association aims to promote collaboration in the NEV industry, vocational education, youth exchanges, and other areas.

Germany, as a 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 and Chinese companies actively operating in each other's countries.