VW and its joint venture partner SAIC Motor Corporation have announced plans to build new plug-in hybrid and fully electric models in China.

The two companies, which operate the Shanghai Volkswagen (SVW) joint venture in China, have signed a key agreement on the automobile future of the Volkswagen Group in China which will see the expansion of the main plant of Anting in order to make it compatible with building electrified models.

“Today’s agreement lays the foundation for the further expansion of our commitment to Chinese society and the environment. We have been at home in China for more than 30 years. Over the next four years, we plan to localize more than 15 different electric vehicle models in China, including plug-in hybrids and fully electric vehicles,” said Prof. Dr. Jochem Heizmann, President and CEO of Volkswagen Group China.

The plant’s first fully electric vehicle to be built at the plant will be based on the VW Lavida and will arrive in about four years. Additionally, the two partners agreed that a new C-segment model of the Volkswagen brand would be produced at the Anting plant, to the west of Shanghai, from 2016.

Along with the development and local production of EVs and components, VW will also expand its research and development expertise in China in the area of fuel cells and plug-in hybrid vehicles.

The agreements are part of the total investment of €22 billion ($24.7 billion) in China planned by the VW Group and its joint ventures by 2019. The investment program, which is the largest in the Chinese automobile industry to date, will be funded from the cash flow of the joint ventures Shanghai Volkswagen and FAW-Volkswagen.

Note: China market VW Lavida pictured

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