Electric Vehicles: Volkswagen Says It Has Mastered the Entire Production Chain in China

AFP Berlin, November 25, Tuesday, Volkswagen announced on Tuesday that its electric vehicles can now be fully manufactured in Chinese factories, a strategy aimed at reducing costs and becoming more competitive in its slowing primary market (China).

The report noted that Volkswagen Group CEO Oliver Blume praised in a statement that Volkswagen has expanded the capacity of its production and innovation center located in Hefei, eastern China, and can now "locally develop, test and manufacture the next generation of smart connected vehicles" there.

The group assured that thanks to local suppliers and China's infrastructure, "in certain key projects of new models, the cost can be reduced by up to 50% compared to Europe."

The new facility in Hefei will also help shorten the development time for electric vehicles by 30%.

This is the first time in Volkswagen's history that cars can be fully manufactured outside of Germany.

Oliver Blume hopes this will "long-term consolidate" Volkswagen's position in the world's largest car market to cope with U.S. tariffs and the sluggish European market.

In the first nine months of 2025, this automotive manufacturer with ten brands sold about 28% of its production in China, an 8.5% increase from the previous year.

However, facing fierce competition, especially in the electric vehicle sector, the group based in Wolfsburg is under pressure in terms of market share, for example, competitor BYD has already taken a significant lead.

Ralf Brandstätter, President of Volkswagen China, added: "Our (Chinese) customers expect rapid technological updates, while demanding the highest quality and safety standards."

AFP cited Blume's summary: "Our 'Made in China, for China' strategy is accelerating."

The group is also considering exporting these locally produced cars to high-growth markets, including Southeast Asia, the Middle East, and eventually South America.

After six consecutive quarters of profit decline, this automotive giant recorded a net loss of 1.07 billion euros in the third quarter and launched a 600 million euro cost-saving plan, which includes layoffs in Germany.

Sources: rfi

Original: www.toutiao.com/article/1849803290160131/

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