Volkswagen (VW) has announced that it will build more electric cars in China, reducing production costs by up to 50% compared to other regions.

This decision comes in the wake of a restructuring strategy, considering the increased competition from Chinese electric vehicle manufacturers. VW will launch approximately 30 electric models in the next five years, with research and development localized in China, where it has invested billions in innovation centers. The development cycle for the new models has been shortened by 30%, allowing for better integration of processes. Although VW holds 20% of the internal combustion engine vehicle market in China, it is not among the top electric vehicle manufacturers. The company has invested nearly 4 billion euros in China since 2022, in an attempt to remain competitive, in contrast to job cuts in Germany.