JAC VW Targets 400,000 New Energy Vehicles Sales In China In 2020

DEC 13 2018 BY MARK KANE 6

30 plug-in models in 2 years. 400,000 produced annually in 2020

JAC Volkswagen, the joint venture between Volkswagen Group China and Anhui Jianghuai Automobile Group Corp., Ltd. (JAC), held a groundbreaking ceremony of the new R&D center in China, dedicated to electrification, connectivity and autonomous driving.

Volkswagen plans to launch in China 30 New Energy Vehicle models in the next two years, which means by the end of 2020. About half of them are to be produced in China.

The goals set by the Volkswagen Group China are pretty bold:

  • 400,000 NEVs to be sold in 2020
  • around 1.5 million to be sold in 2025
JAC Volkswagen President Li Ming said:

“Today’s groundbreaking for the R&D centre is another breakthrough in the history of JAC Volkswagen. Electrification and making cars smart are the key directions for the transformation that is happening in the automotive industry. With the strong support of the shareholders and all the sectors, the company is seizing the opportunity to pursue innovation-driven development in its new energy vehicle offensive, and move towards the future of sustainable mobility.”

Peter Wyhinny, First Vice-president of JAC Volkswagen said:

“I feel very proud and excited to witness this historic moment. With the rapid development of the electric vehicle industry, JAC Volkswagen, as the first joint venture dedicated to these vehicles in China, is taking full advantage of its shareholders’ resources to meet the needs of Chinese customers and build a sustainable mobility future with new technology.”

Categories: China, Volkswagen

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6 Comments on "JAC VW Targets 400,000 New Energy Vehicles Sales In China In 2020"

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China EV (BEV and PHEV) sales in 2019 and 2020 going to be stunning. Almost all the companies (Chinese and non-Chinese) are building factories with huge annual capacity each for EVs. Sales this year already growing at a unbelievable rate.

In November, EV sales reached 6.5% of passenger vehicle (cars, SUVs, MPVs) sales. Their share in September was 5% and 5.85% in October. EV sales grew 63% YoY to 131,800 in November while, Jan-Nov 2018 sales grew 87%. 80% of EV sales in November are all-electric vehicles (BEVs) and remaining are plug-in hybrids (PHEVs).

Another good news is, traditional ICE vehicle sales are declining from middle of 2018 with each month showing bigger negative growth compared to YoY. In November ICE sales are down by whopping ~20%. It will be double whammy for companies who are not investing much in EVs. Each month tens of new EV models are being registered in China and this is going to grow even more in 2019 and 2020.

Do Not Read Between The Lines

The way things are going, EV credits are going to be very cheap.

Unless the government suddenly decides that you are not allowed to buy them… Or set a fixed (high) price for them.

Only idiots would rely on buying credits and not make sure you have your own… It is not like in the greedy US where companies run the show.

with everybody wanting to sell that many EV in China, they may saturate the market

The market is ~30 million vehicles per year. EVs are only at ~1 million.

In 2017 VW sold 3.3 million cars gasoline + PHEV / EV in China. VW is building a new 300 K EV factory in Anting (Shanghai) to make MEB based EVs for the NEV demand of China needed in 2020 and later.