One of Volkswagen Group’s main joint ventures in China, FAW-Volkswagen Automobile, plans to invest CNY2.3bn (US$324m) to introduce three new SUV models at its assembly plant in Tianjin, according to local reports.
Two of those will be new energy vehicles (NEVs), either pure electric or plug-in hybrid, with full commercial production scheduled to begin in 2026.
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The models will be sold under the Audi and Volkswagen brands. The news emerged following a management committee meeting between the Tianjin Economic-Technological Development Area and FAW-Volkswagen.
The FAW-VW JV is majority controlled by state owned FAW Group which holds 60% of the shares while Volkswagen AG has a 25% shareholding, Audi AG 5% and Volkswagen (China) Investment 10%.
FAW VW sales increased 5% to 1,910,200 vehicles last year, including some imported Audi models, making it the largest automaker in China jointly owned by a foreign automaker.
VW also has a major joint venture with Chinese state owned automaker SAIC Motor, called SAIC Volkswagen Automotive, in which it has a 50% shareholding. It also has a 50% stake in a more recent joint venture with Anhui Jianghuai Automobile, called JAC Volkswagen Automotive.
