Volkswagen will create a network of fast-charging stations in China together with local partners to increase sales of electric vehicles in the world’s largest market.
The Volkswagen company and longstanding partner of the automaker China FAW Group Co. will own 30% of the companies operating the charger across the country.
Global manufacturers such as Volkswagen and Ford Motor Co., turn their attention to electric vehicles, as sales of cars with internal combustion engines in China declined markedly in recent years. Despite the fact that electric cars make up only a few percent of total vehicle sales, the growth of electromobility are impressive, and in 2020 China plans to sell 2 million of electric vehicles as part of a strategy to reduce air pollution and dependence on imported oil.
Volkswagen will invest 4 billion euros ($ 4.5 billion) with its partners in the electrification and smart cars this year. Chinese companies will jointly invest in the company 1 billion yuan (147 million U.S. dollars or 130 million euros) and is planning to increase their investment.
The negotiations on the establishment of a joint venture is nearing completion. SAIC Motor Corp., the other partner is VW, is ready to participate, and it is expected that in the future to join him and other Chinese manufacturers of electric cars and batteries.
In November 2018, Volkswagen announced the possible construction of China’s public network of fast-charging stations that will allow drivers to charge their electric cars within 15 minutes.
Construction of charging station in China is the first step of Volkswagen in the field of charging infrastructure. A subsidiary of the German group Electrify America plans to install 2000 quick charging points in the US. Only in 2019, the company will install about 500 quick charging stations in the United States.
During the presentation of its new subsidiary Elli specializing in charging infrastructure and energy, Volkswagen has announced that it intends to move forward with the expansion of charging points for employees from 1,000 to 5,000 units by 2020. In addition, by 2020, 4000 dealers and partners in the EU will be equipped with chargers.