The news comes as Chinese president Xi Jinping set national targets to reach peak carbon dioxide emissions by 2030 and carbon neutrality by 2060, according to the German auto giant.
Volkswagon Group’s Chinese operations announced on Monday it planned to invest nearly €15bn along with joint ventures SAIC Volkswagen, FAW-Volkswagen and JAC Volkswagen to boost electric vehicle production from 2020 to 2024.
The funds come after the Group pledged an additional €33bn to increase green transport production globally via 15 new energy vehicles (NEV), as well as setting targets of 35 percent total vehicle sales in China as NEVs, by 2025.
Chinese President Xi Jinping recently set national targets to reach peak CO2 emissions before 2030, and achieve carbon neutrality before 2060.
The Group aims to reach a combined output of up to 600,000 vehicles a year after opening two Modular Electrification Toolkit (MEB) facilities set to begin production in October. Sales are expected to double compared to 2019, the company said.
Volkwagen Group China will also raise its stakes in its JAC joint venture to 75 percent to strengthen its position in NEVs in China, namely via a new factory and research and development centre in Hefei, it said.
VW China Group plans to gain a 26 percent stake in battery maker Gotion to meet rising demand in battery capacity. Chinese supplier CATL will also supply locally-produced vehicles, with A123 becoming the second-largest firm in the mainland.
The announcement comes as several motor companies such as Tesla, Volkswagen AG and BMW compete for the Chinese market, namely after the former earned record vehicle sales this year after opening its Gigafactory 3 in Shanghai.
Berlin also launched bilateral talks with Beijing to boost investment in the Chinese economy in 2018. Volkswagen AG also pledged to invest €2.1bn and a further €1bn to increase its stake in joint ventures with JAC, it was reported in May.