According to the production plan seen by Reuters, Volkswagen (vwg_p.de) will increase the production of electric vehicles to about 1 million by the end of 2020, thus surpassing Tesla (tsla. O), making China a key battlefield.
Volkswagen is preparing to produce electric cars in two Chinese factories next year. According to VW's plan, the two Chinese plants have a capacity of 600000 vehicles. This reflects the ability of Volkswagen to industrialize faster than other leading companies in the electric vehicle market. The plan has not been published before.
Tesla remains committed to the goal of producing more than 500000 vehicles a year and will build a new plant in Shanghai. Volkswagen can rely on Anting and Foshan's two already staffed factories to produce electric cars.
The scale and speed of development of Volkswagen's electric vehicle business reflect a trend of change favorable to mature manufacturers. They can make use of the profits of existing factories and diesel Sport Vehicles (SUVs) to achieve faster development than start-ups.
"The real thing is that the threshold to enter the automotive industry is still very high," said Max Warburton, an analyst at Bernstein research. "It's difficult to make cars. The transition to electric cars will be expensive, but it may be led by traditional manufacturers. "
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