Despite problems such as increased competition and insufficient demand, a top Volkswagen AG China official underlined the German automaker’s commitment to hastening the pace of electrification in the world’s second biggest economy on Saturday.
VW plans to increase the number of charging stations for electric vehicles in China to 17,000 by 2025, as part of a 15-billion-euro ($16.26 billion) investment in the country on electric mobility with its three joint ventures by 2024, according to Stefan Mecha, chief executive of the Volkswagen brand in China, at China’s EV 100 forum in Beijing.
“The market is flush with new, highly competitive players but strong competition simply motivates us to constantly innovate and improve,” Mecha said.
He added that despite softer short term demand in China, the company is confident that there would be a recovery.
In February, Chinese electrified vehicle maker BYD outsold the Volkswagen-branded cars to be the best-selling passenger car brand in the world’s largest auto market for the second month in four.
Mecha also urged China to extend a purchase tax exemption on new energy vehicles (NEVs), which include both pure electric and plug-in hybrid cars, beyond this year as part of the policy support for the sector.
In September, China extended the tax exemption on such vehicles by a year to the end of 2023.