Volkswagen Group and Chinese manufacturer Anhui Jinghua Automobile (JAC) have signed a 50:50 joint venture agreement to develop and launch electric vehicles on the Chinese mass market.

Volkswagen ID Concept

The first jointly developed EV is expected to arrive in 2018 under the deal, which also includes the construction of a new factory as well as a research and development centre alongside plans for the development and production of components for new energy vehicles, the development of vehicle connectivity and automotive data services as well as establishing new used vehicle platforms.

The Volkswagen Group is teaming with three Chinese partners – FAW, SAIC and JAC – for its EV offensive in China and plans to deliver 400,000 electric vehicles to the Chinese market in 2020 and 1.5 million electric vehicles in 2025.

“The new partnership is a further milestone in our electric offensive in China,” said Matthias Müller, CEO of the Volkswagen Group, commenting on the agreement. “Just as we have played a key role in shaping mobility together with our partners in China over the past 30 years or more, we want to play our part in shaping the mobility of the future: electric, fully networked and in line with the needs of our customers.”