The new company, 100%TechCo, is scheduled to be operational in early 2024 and will have more than 2,000 procurement and R&D staff in the future.

The new company will integrate advanced technologies from local suppliers at an early stage of product development, enabling model offerings to be more responsive to Chinese customer needs, it said.

The 100%TechCo will also help bring Volkswagen's joint ventures in China -- SAIC Volkswagen, FAW Volkswagen and VW Anhui -- into closer synergy with their R&D programs and optimize profitability, according to the release.

At the Shanghai auto show, which began yesterday, Volkswagen Group brands brought 20 electric models, including the ID.7, which made its world debut.

By 2030, Volkswagen will have more than 30 all-electric models across its brands, it said.

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