Growing interest in China's NEV market

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【Summary】German enterprises are increasing their investment in China's new energy vehicle (NEV) industry to tap into the country's market potential. China has seen a significant increase in NEV production and sales, with output and sales up by 40% and 41.7% respectively compared to the previous year. Hefei, in east China's Anhui Province, is becoming an important NEV industrial cluster, attracting companies like Volkswagen and Continental.

FutureCar Staff Aug 27, 2023 6:21 AM PT

German enterprises are increasing their investment in China's new energy vehicle (NEV) industry to take advantage of the market potential in the country. China has experienced a significant growth in NEV production and sales this year, with output and sales both increasing by over 40 percent compared to the previous year. Hefei, the capital of Anhui Province, is a hub for NEV enterprises, housing companies such as Volkswagen Anhui, NIO, and BYD. The city is working towards becoming an important NEV industrial cluster in China and globally.

Volkswagen Anhui, a majority-owned joint venture of Volkswagen Group, is playing a key role in the group's e-mobility push and decarbonization strategy in China and globally. The company is investing 23.1 billion yuan to build a new NEV hub in Hefei, covering the complete value chain from R&D to manufacturing, sales, and services. They are also collaborating with Hefei University and the local government to cultivate high-skilled NEV professionals through the establishment of Volkswagen College.

In addition to Volkswagen, Continental AG, a leading tire manufacturer, 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 output value in the region.

German enterprises, including Volkswagen and Continental, have shown a growing interest in investing in Anhui. The China-Germany Friendship Association has been facilitating cooperation between German companies and Anhui, particularly in the NEV industry, vocational education, and youth exchanges. The strong trade relationship between China and Germany has created opportunities for collaboration in market access, technology innovation, and talent cultivation.

Overall, German enterprises are recognizing the potential of China's NEV market and are actively investing in the industry. This collaboration between Germany and China not only benefits the companies involved but also contributes to the growth and development of the NEV sector in both countries.