Volkswagen Anhui has started production of the Cupra Tavascan for export to Europe, and another Volkswagen-branded model for the Chinese market will roll off the production line in 2024.

(A car chassis from the MEB platform shown on the Volkswagen Anhui website.)

Volkswagen will export China-built EVs to the European market, citing limited capacity in its home market, according to a December 2, 2022 Bloomberg report.

Volkswagen has been present in China for 40 years with two joint ventures, SAIC-Volkswagen and FAW-Volkswagen, which have been hugely successful in the fuel-car era. These two JVs are building the VW ID. series of EVs.

Volkswagen plans to invest a total of RMB 23.1 billion yuan ($3.25 billion) in Anhui, and in addition to Volkswagen Anhui, it has several other subsidiaries in the eastern Chinese province, the Anhui Daily report noted.

Volkswagen's parts company in Anhui is its first wholly owned battery system plant in China, with the first high-voltage battery system officially going into production in November 2023, according to the report.

The Volkswagen parts company will also start production of CTP (cell-to-pack) battery packs based on standard cells developed in collaboration with local Anhui power battery maker Gotion High-tech.

For Volkswagen, Hefei of Anhui is not only a production base, but also its first global center for new energy vehicle R&D, innovation, and component sourcing outside of its headquarters in Germany, the Anhui Daily report noted.

($1 = RMB 7.0999)

Analysts expect Volkswagen's joint venture with JAC to be its new growth pole in China