Volkswagen to Build Plug-In Hybrids in China With Joint Venture Partner FAW
According to Reuters, Volkswagen will soon start manufacturing select plug-in hybrid vehicles with joint venture partner FAW in China.
“Production is likely to be at its new assembly plant in Foshan, southern China, the sources told Reuters on condition they not be identified because the plans are still confidential.”
This move will allow VW to sell its PHEVs in China at a much lower price since they’ll then qualify for China’s plug-in vehicle incentives, which only apply to domestically built green automobiles.
It’s believed that VW will announce this plan formally at the Beijing Motor Show later this month.
As of right now, Volkswagen’s official comment on the matter is “no comment.”
For VW, China is it #1 market in terms of VW Group sales, so setting up a manufacturing site there for PHEVs seems a no-brainer given that the vehicles will then qualify for subsidies and considering that plug-ins are now becoming popular in China since both Beijing and Shanghai have lifted selling restrictions that previously banned automakers such as BYD from selling green vehicles within both of those cities.