ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

Volkswagen gets green light for third Chinese tie-up

German auto giant aims for an advantage in the growing electric car market

Volkswagen is the top passenger car maker in China.

GUANGZHOU -- China's state-owned JAC Motors and Volkswagen have been granted regulatory approval to co-produce electric vehicles, an arrangement that reflects the aligned interests of an ambitious German automaker and a government eager to foster a domestic car industry.

The partnership will set up a plant with an annual output of 100,000 units in Hefei, Anhui Province, where JAC is headquartered. Investing about 5 billion yuan ($725 million), the two automakers will form a 50-50 joint venture and begin production in 2018.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more