German automaker Volkswagen on Thursday announced its plan to invest €2.5 billion ($2.68 billion) to enhance production and innovation in China's Hefei city, located in Anhui Province.
With this investment, the company aims to bolster its presence in the region as well as to boost the electric vehicle (EV) output by commencing production of two brand models with the help of Chinese partner XPeng in 2026.
Ralf Brandstaetter, Volkswagen Group's management board member for China, emphasized that advancements in Hefei region would accelerate the deployment of technologies by 30%.