The Volkswagen Group is one of the first and most successful international partners in China’s automobile industry. The Group has grown together with China’s auto industry over four decades of partnership with the country.
The success story started as early as 1978 when the Volkswagen Group first began to communicate with its Chinese counterparts. In 1984, SAIC Volkswagen Corporation Ltd, the first joint venture of the Volkswagen Group in China, laid the foundation in Shanghai. In 1991, FAW-Volkswagen Corporation Ltd. was established in Changchun, creating the Volkswagen Group’s second joint venture. In 2017, the Volkswagen Group launched its third joint venture, JAC Volkswagen, focusing on NEV manufacturing in China. In December 2020, the joint venture was renamed Volkswagen (Anhui) Automotive Company Limited, after the Volkswagen Group increased its stake in the company to 75%. In addition, the new R&D center was inaugurated in Hefei.
The business scope of the Volkswagen Group in China includes the production, sales and services of vehicles and parts, such as engines and transmissions. The Group is represented by many auto brands in all segments — including Volkswagen Passenger Cars Brand, Audi, ŠKODA, JETTA, Porsche, Bentley, Lamborghini, MAN, Scania and Ducati.
Since entering the Chinese market, the Volkswagen Group has taken the leading market position. In 2021, Volkswagen Group China, together with its joint venture partners, delivered 3.3 million vehicles to customers in Mainland China and Hong Kong.
By 2050, the Volkswagen Group aims to be fully net carbon neutral around the world. Volkswagen Group China is tackling this plan with the goTOzero initiative to strengthen decarbonization efforts. By 2025, factories around the globe will produce 30% less waste and use 30% less energy and water per vehicle. The share of electric models in the Group’s portfolio will be increased by up to 35%. In China, the Group is investing billions of RMB for e-cars, e-factories and corresponding R&D together with its joint venture partners to achieve this goal.
Volkswagen Group China has established plants in Shanghai, Changchun, Dalian, Nanjing, Yizheng, Chengdu, Foshan, Ningbo, Changsha, Urumqi, Tianjin and Hefei, and currently manufactures vehicles and components at more than 40 plants in China. The MEB plants in Anting, Foshan and Hefei focus on the production of pure electric cars.
As of the end of 2021, Volkswagen Group China has over 90,000 employees in China, including those of the joint ventures.
Volkswagen Group China, which has always strived to be China’s most responsible and trustworthy partner, not only provides high-quality products and services to consumers but also sees the sustainable development of Chinese society as one of its main responsibilities. In 2021, Volkswagen Group China developed three new CSR strategic areas, namely a low carbon future, education, and economic empowerment, based on previous CSR frameworks and experience. The Group is committed to shouldering its social responsibilities and contributing to the sustainable development of China's ecology and future society.
The Volkswagen Group is accelerating the transformation into a software-driven mobility company. By continuing to bring the most advanced and environmentally sound technologies and products to China, as well as providing professional services for even higher customer satisfaction, the Volkswagen Group is driving towards a sustainable future with China’s automobile industry.