VW Plans To Build 1 Million Electric Cars In China Yearly By 2025

JAN 3 2019 BY GASGOO 29

Big dreams for EVs in China.

On December 11, Volkswagen showed its three new PHEV members, the Touareg PHEV, the Magotan GTE Concept and the Tayron GTE Concept. In 2018, VW brand introduced no less than nine new models and launched the “Move Forward” initiative. In the coming 12 months, the brand’s NEV models will be doubled to six.

At the PHEV workshop, it was revealed that Volkswagen is ambitious to build 1 million new energy vehicles (NEVs) per year in China by 2025. Consumers will have wide choice of BEV versions and all new models are expected to be fully connected from 2019 on.

The Germany brand divides its NEV initiative in China into three phases, which starts with locally-produced or imported PHEV or GTE models. By 2020, VW’s NEV full range in China will boast at least 10 NEVs and the local NEV production will be up to 300,000. At the third phase, the automaker points out that all BEVs will be built on its innovative vehicle architecture, the MEB platform in 2020/2021 and features new design as well as enhanced user experience.

In order to realize its ambitious sales target, VW needs to build a strong and flexible NEV production network. The company’s next step is to build up a global NEV production network. In the future, the automaker will have seven NEV production sites in China, one in the USA, and ten in Europe.

Source: Gasgoo

Categories: China, Volkswagen

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29 Comments on "VW Plans To Build 1 Million Electric Cars In China Yearly By 2025"

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Let’s all celebrate, … with a stein full of coal!

Yeah, right.

Maybe, people would prefer: Yeah, wrong.

My Concern and question is,.. “What will they be doing for North America”

Continuing to try and dump 330k TDI diesels.
You can get one for a song, 8k or so, but don’t since you’ll be singing the blues if you do.
https://www.greencarreports.com/news/1116309_300k-bought-back-vw-diesels-are-decaying-in-37-lots-as-it-waits-for-what

I Hear You Bro. ….* 🙂 *

They should just export these to Africa.

Make 3 EV models. . ?

From article: “…At the PHEV workshop, it was revealed that Volkswagen is ambitious to build 1 million new energy vehicles (NEVs) per year in China by 2025…”
———

As is the current published Chinese government goal, China Inc, 15 years from will have extracted from VW (by means of the various VW/China Inc JV agreements) all that VW has that is of value to China to allow China to kick VW to the curb… China has been fairly transparent about their end-point intentions/goals on this topic.

If VW is planning on being a an active JV partner in building 1 million EVs in China 15 years from now then VW is planning on China not being able to execute its stated goal of global industrial domination of EV car making.

Time will tell…

They are already making 3.2 million cars locally in China. Add the imported models and numbers grow..
1 million EVs is by 2025 just one in four cars they sell.
They make about 29 car models in China now.

There will be few upward revisions for these numbers over the next 2-3 years. With rapidly declining ICE sales and growing EV sales, all companies will be forced to increase the capacities.

I expect cars to be >90% BEV by 2027. Mostly China followed by Tesla, European car makers will become niche products, American car makers besides Tesla will die.

They don’t make cars anyway, mainly trucks, suvs. They’ll still be around, probably. Your view is rather extreme.

So Tesla are going to be making 20+ million cars for the US market alone in 7 years? Yeah right…

Or are you suggesting the vast majority of cars sold in the US in 8 years will be Chinese?

There were only 16M passenger vehicles sold in the US last year, and 2027 is 8, not 7, years away.

Tesla has often more than doubled production Y/Y, but we’ll be conservative and say they only quadruple every 3 years. 500K in 2019, 2M in 2022, 8M in 2025, 32M in 2028. Yeah. Hitting 16M in 2027 is fairly conservative.

Also, the Chinese taking over the car market doesn’t seem all that unlikely to me. The Japanese did it already – why couldn’t China?

Yes, you are right, my memory of sales numbers was a little rusty. Point still stands. The “conservative” Tesla production claim is still ridiculous. The YOY production increases has been based on having factories already in place. Lets assume 500,000 cars per factory (they currently haven’t shown anywhere near that volume, but that’s their hope eventually). By the end of 2022 they hope to have 3 factories producing at that rate. That’s 1.5 million vehicles (+the 100k from their X/S factory), so 1.6 million in 2023, assuming no delays. So you’re 2022 numbers are already way off… To get to 8 million 2 years later they would need to build another 12 factories within those 2 years (well, start then at around the end of this year), and then 48 more the next three years… Each one at several $B each… Also, care to show any car manufacturer that has been able to ramp up at anywhere near that rate anywhere in the world? Manufacturing cars is not the same as manufacturing phones (or any electronics). And taking the ramp up of a single model, with a major preorder list is going to make any predictions based on it complete… Read more »

The Chinese are very well capable of taking care of those 1 million by themselves.

1M EVs? Yes. 1M VWs? Nope.

By 2025, China will be selling 10 million EVs a year in Europe.

That’ll be a first.

Not at all.
Look at the Japanese camera business.
China will build out their EV sales in China and will produce the lowest unit cost for components of any country in the world. They they only need to hire a European car designer to make them look good, and world dominance.

Trump, backing the LOSERS, will give the EV industry away to China.

This should be a lesson to Republicans.
You should never make economic policy based on campaign contributions/PACS/bribes.
You get second rate performance this way.

Yeah, … go with the WINNERS:

“A private equity firm managed by the son of former Vice President Joe Biden struck a deal with China’s state-owned bank in 2013 at the same time that Biden was in the country to meet with Chinese President Xi Jinping.

Hunter Biden, who arrived in China aboard Air Force Two alongside the vice president and the rest of the U.S. delegation, was at the time in control of Rosemont Seneca Partners LLC., a private equity firm that would go on to strike a deal with the state-owned Bank of China to create a $1 billion joint investment fund.

In excerpts from his upcoming book, “Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends,” Breitbart News senior editor-at-large Peter Schweizer writes that the China deal was part of a trend of high-stakes deals between the sons’ investment firm — under the Rosemont entities umbrella — and foreign governments that were also in the middle of striking deals with the Obama administration.”

Biden’s son inked deal with Chinese government days after vice president’s trip
https://thehill.com/blogs/blog-briefing-room/news/378629-breitbart-editor-biden-and-kerrys-sons-inked-deal-with-chinese

LMAO, Breitbart and wildly inaccurate/right wing Koch Heads’ “think tanks” funded hatchet man Peter Schweizer:
https://en.wikipedia.org/wiki/Peter_Schweizer

I think more goods in general (that can be automated) will be homesourced in the future. That is at least the trend in Norway. AI software, have started to automate image adjustments used by real estate agencies for example (add blue sky, and in general improve images). That was mostly done manually in India. Now, more of the jobs are handled by AI software. Automated handling of bills are now more common, and less need to scan or take a photo of a bill/reciept and send it to India where it is being processed before collected data is sent back to the accountant in Norway. Now software with some AI features handles the job a lot quicker, cheaper and keeps information locally. 60% of all bank employees have lost their job in Norway over the past 10 years due to automation. The boss of the largest bank says another 60% or more will loose their job over the next 3-10 years. More advanced CNC machines, more robotics and automation bring the business home, slowly. Still, they hire less people then before it was outsourced – since the automation can produce more products cheaper, quicker and have more automated less labour… Read more »
Interesting post, .. thanks for that. I will say that you left out “tariffs” in your list of things that matter: “Labour cost is not relevant, and only the price of electricity, raw materials, the cost of the building and the distance from production site to customers matters.” As well as environmental restrictions (or the lack thereof) I’ve been hearing for a while now that the automated factories will come home … but automotive, aerospace, heat and air, … and on and on keep closing factories in the U.S. and moving them to Mexico and to China and other 2nd/3rd world locations, … even though we’ve got some of the cheapest energy (due to abundant natural gas) right here in the states — as well as the closest locale to mass consumer markets. The primary reason …. the way I understand it… is taxes (tariffs). and why there is an ongoing effort to try and re-negotiate trade agreements. That’s where all the politics play in. And even if there are fewer jobs inside a modern automated factory, there are still a fair amount of jobs that are associated with it (power supply, building maintenance, trucking, machine maintenance, etc……)
Yeah, I agree with you there. I have a lot of family in the states and have seen and heard about how factories are moved to low cost countries since (at least) the end of the 80ies, and a lot of local stores have been replaced by a Walmart for example. The skilled employees of special stores had a significant wage drop when they started to work for the huge chain stores, selling almost only Chinese products. . basically the same stuff you can buy from China from Ebay. . The local smaller brands could not sell their products in the big chains, and the brands have died off – or they moved production to a cheaper location.. . or the brand name has been bought, and the products are then made in China. Take what used to be US made power tools, and see where they are made now, and in some cases who owns the brand. Not only are production equipment moved, but more of the engineering part too. When enough companies move, skill is lost – and they will loose the cluster effect, by having skills and products “next door”. They had local factories that made their… Read more »

By 2025, de may see the first Chinese cars trickle in to Europe in numbers higher then triple digits.
They will not Even be close to 1 million ( unless they but another brand). But give them more time, and by 2030. . They may reach a million.. At best.

western car makers are fools.
They should focus on America/Europe combined with pushing AE and Nuclear power.
By focusing on CHina, they WILL lose their IP as well as their ability to lower their own costs by making their own batteries.
Tesla is focused on the important items in America, by focusing on batteries.

If any car maker has a track record of operating successfully in China it is Volkswagen. Their first Chinese production Joint venture started in 1984.
They know what they are doing and in the process will create lots of profit for themselves and their Chinese JV partners.