Shanghai (ZXZC)- Volkswagen Group China (VW China), JAC Motors and SEAT, Volkswagen's Spanish car brand, signed a Memorandum of Understanding (MoU) on November 28 in the presence of Chinese President Xi and Spanish Prime Minister Pedro Sánchez at a ceremony held at the Palace of Moncloa in Madrid.

Under the agreement, three parties will join forces to develop an electric vehicle (EV) platform based on their technology strengths and product resources for production of JAC VW's models. The Sino-German joint venture will introduce the SEAT brand by 2021 and jointly electrify SEAT-branded vehicles.

In addition, the agreement also says that the construction of the JAC VW R&D center will start before the end of 2018 and is planned to be completed in 2021. The joint R&D center will focus on such core areas as IoV (Internet of Vehicles), autonomous driving and other future strategic directions.

The cooperative programs involved in the MoU are part of VW China's e-mobility strategy designed for the world's largest vehicle market. The German auto giant aims to launch 30 new NEV models in China over the next two years, among which 50% models will be locally produced there. What's more, the group plans to hand over around 400,000 NEVs in China by 2020 and increase the number to 1.5 million units by 2025.