Volkswagen hopes to take over electric car market in China

Volkswagen hopes to take over electric car market in China

May 27, 2020 0 By autotimesnews

The German automaker has been buying up Chinese electric vehicle manufacturing companies. This is reported by Reuters, citing its own sources.

Volkswagen intends to expand the Chinese market for environmentally friendly cars, for which it announced its intention to acquire a 50% stake in Anhui Jianghuai Automobile Group Holding, part of JAC Motors. According to the source, the transaction amount is about $ 491 million. Volkswagen also intends to buy a battery company Guoxuan High-tech Co Ltd.

The companies themselves refused to comment on this information, but it is expected that this will be officially announced on Friday. Note that both Anhui Jianghuai and Guohuan are located in Hefei, Anhui Province. Such a geographical location is undoubtedly advantageous from the point of view of logistics of component supply.

Previously, AutoTimesNews already wrote that Volkswagen intends to sell ID family electric cars not through its dealer network, but directly from the factory. At the same time, car dealerships will get the role of an intermediary.