Volkswagen is today China’s biggest automaker and has every intention of holding on to that honor. Volkswagen Group and China’s Anhui Jianghuai Automobile, or JAC, have now signed a memorandum of understanding for a future partnership in electric cars.
The new agreement is a preliminary step so there’s no actual guarantee or details about these models coming to the market, but is an intermediate to the final goal, which could be achieved in about five months from now, as per reports. The two automakers have officially declared they would develop, build, and sell future electric vehicles for the Chinese market. “Together, Volkswagen Group and JAC will thoroughly explore all options how to concentrate our resources, including existing and future model platforms, technologies and other expertise, to achieve a competitive product strategy as soon as possible,” commented Jochem Heizmann, President and CEO of Volkswagen Group China.
JAC has the Jianghuai and Ankai brands in China, with 333,639 vehicles and chassis produced during the first half of the year. The company produces commercial models like trucks and buses and some products for consumers as well, ranking as China’s ninth-largest automaker – but one of the most important EV producers. China’s regulations and incentives are also pushing people to buy electric cars and the market already has exclusive offers such as the Denza 400 by Daimler and BYD or the new BMW X1 plug in hybrid.