The Volkswagen Group is one of the first and most successful international partners of China’s automobile industry. The Group has grown together with China’s auto industry in the past 30 years of partnership with the country.
The success story started as early as 1978, when the Volkswagen Group first started to communicate with Chinese counterparts. In 1984, SAIC Volkswagen Corporation Ltd, the first joint venture of the Volkswagen Group in China, laid the foundation in Shanghai. In 1991, FAW-Volkswagen Corporation Ltd was established in Changchun, creating the Volkswagen Group’s second joint venture. In 2017, Volkswagen Group launched JAC Volkswagen, a third joint venture with Anhui Jianghuai Automobile Co., Ltd. for e-mobility in China. In December 2020, the joint venture was renamed as Volkswagen (Anhui) Automotive Company Limited, after Volkswagen Group increased its stake in the company to 75%. Meanwhile, the new R&D center was inaugurated in Hefei.
The business scope of the Volkswagen Group in China includes the production, sales and services of vehicles and parts, such as engines and transmissions. The Group is presented by many auto brands of all segments — including Volkswagen Passenger Cars Brand, Audi, ŠKODA, JETTA, Porsche, Bentley, Lamborghini, Volkswagen Commercial Vehicles, MAN, Scania and Ducati.
Since entering the Chinese market, the Volkswagen Group has taken the leading market position. In 2019, together with its joint venture partners, Volkswagen Group China delivered 4.23 million vehicles to customers in the Chinese mainland and Hong Kong.
By 2050, the Volkswagen Group aims to be fully net carbon neutral around the world. Volkswagen Group China is tackling this plan with the goTOzero initiative to strengthen decarbonization efforts. By 2025, the factories around the globe will produce 30% less waste and use 30% less energy and water per vehicle. The share of electric models in the Group’s portfolio will be increased by up to 35%. In China, the Group is investing billions of RMB for e-cars, e-factories and corresponding R&D together with joint venture partners to achieve this goal.
Volkswagen Group China has established plants in Shanghai, Changchun, Dalian, Nanjing, Yizheng, Chengdu, Foshan, Ningbo, Changsha, Urumqi and Tianjin, and currently manufactures vehicles and components at 33 plants in China. Two factories purely for electric cars in Anting and in Foshan will start production in 2020, with a combined technically installed capacity of 600,000 vehicles per year.
As of the end of 2019, Volkswagen Group China has more than 100,000 employees in China, including those of the joint ventures. At around 3,000 authorized dealerships across the country, over 330,000 dealer staffs provide professional services to thousands of customers every day.
Volkswagen Group China, which has always strived to be the most responsible and trustworthy partner of China, not only provides high-quality products and services to consumers, but also sees the sustainable development of Chinese society as one of its main responsibilities. As part of its long-term commitment to China and its people, the Group has actively supported a wide range of corporate social responsibility programs across environmental protection, sports development and art & culture in China. In the future, Volkswagen Group China will continue acting as an advocate and role model to further contribute to the sustainable development of the Chinese society.
By continuing to bring the most advanced and environmentally sound technologies and products to China, as well as providing professional services for an even higher customer satisfaction, the Volkswagen Group is driving towards a sustainable future with China’s automobile industry.