Volkswagen Group stated it prepares to spend 10 billion euros ($11.8 billion) by 2025 to develop and produce all-electric and plug-in hybrid automobiles as it seeks to abide by upcoming strict rules in China.
The group, that includes Volkswagen and Audi, plans to release 15 of the so-called new energy vehicles (NEV) models over the next two to three years, and an extra 25 after 2025, China chief Jochem Heizmann informed Reuters on Thursday.
China’s NEV production and sales quotas, which should be met by 2019, have caused a flurry of electric car offers and new launches as automakers in the country race to guarantee they do not fail. Automakers that do fail will be required to purchase credits.
Volkswagen presently has around 10 NEVs currently on the market in the country, although all are imported models with restricted sales volumes, according to a company spokeswoman.
Heizmann, discussing ahead of the Guangzhou auto show, including that the group is intending to sell 400,000 new energy vehicles annually in China by 2020 and 1.5 million annually by 2025. NEVs means all-electric battery vehicles and greatly electrified plug-in hybrids.
Heizmann stated some of those models will have a 400-600km driving range on a one full charge. By comparison, Tesla Model S has a range of 490km and as much as 632km depending on battery capability, according to the company.
The Volkswagen Group is also confident that its group business and their regional China joint venture partners will be able to create adequate NEV sales volume to account for NEV quotas by 2019, Heizmann stated, including that there will be no necessity to buy credits.
