Volkswagen Group has announced it will build the Cupra Tavascan, the Spanish brand's first all-electric SUV, at a plant in China operated by the Volkswagen Anhui joint venture.

While the move may suggest a coming shift in strategy for the automaker, which up until now had been building in Europe all its electric vehicles sold in the region, Volkswagen said that's not the case.

In a statement to Bloomberg, the company cited limited production capacity in its home market for the decision. "The Anhui factory was the plant with the right capacity and technology at the time of production planning," VW said, adding that it has no plans to produce other vehicles in China for export.

Sharing the MEB platform with the Volkswagen ID. series and other EVs from the Audi and Skoda brands, the Cupra Tavascan compact SUV coupe is due to go on sale in Europe in 2024. The model will be Cupra's second MEB-based EV after the Born compact hatchback.

Not much is known about the Tavascan for now, but given the sporty nature of the Cupra brand, the electric SUV should borrow the powertrain from the Audi Q4 50 e-tron Sportback, Volkswagen ID.5 GTX or Skoda Enyaq Coupe.

Gallery: 2024 Cupra Tavascan

Expect a dual-motor setup with at least 295 horsepower, which should enable similar acceleration to the VW ID.5 GTX, which does 0-100 km/h (0-62 mph) in 6.3 seconds and hits a top speed of 112 mph (180 km/h).

The Tavascan is set to play a major role in increasing the Cupra brand's sales to 500,000 units per year by 2025. At the moment, that looks like a very ambitious target as Cupra sold approximately 200,000 vehicles from its creation as a standalone brand in 2018 to June 2022.

Volkswagen Group is working on a five-year financial plan to work out plant allocations for new models and decide how much money to invest in those factories by 2025. A major factor in making those decisions is the launch of software platforms for upcoming electric models that the carmaker has repeatedly had to delay.

Volkswagen Anhui (formerly known as JAC Volkswagen) is Volkswagen Group's first dedicated NEV joint venture in China. The German automaker has a 75-percent stake in the JV, with Jianghuai Automobile Group (JAC) holding the rest.

The joint venture operates Volkswagen Group's third MEB plant in China in Hefei, Anhui province. Completed in February 2022, the factory will start building its first MEB product in the second half of 2023—likely the Cupra Tavascan. The first pre-production vehicle rolled off the Volkswagen Anhui factory line on December 7, but its design was hidden under a cover. The JV is also building a battery system plant next to the vehicle factory.

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