Volkswagen Looks East To China, Pledges €2bn To Boost Beijing's Electric, New Energy Vehicle Market

The world's largest automaker group is set to enter the Chinese market as rival motor companies compete for a top spot in the world's largest car market, the company announced on Friday.

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Volkswagen AG (VW) announced plans on Friday to join forces with two Chinese electric vehicle companies and invest €2.1bn ($2.33bn).

The German motor giant said it would invest €1bn for a 50 percent share of the state-owned parent company of Anhui Jianghuai Automobile Group (JAC Motors) as well as increase shares from 50 to 75 percent in an existing joint venture with JAC in electric vehicles, a company statement read.

Five electric vehicle models will be launched in the joint venture by 2025 to establish a manufacturing base, VW said.