Volkswagen to spend big to meet EV quota

Yesterday the Volkswagen Group announced that it plans to spend 10 billion euros by 2025 in order to develop and build all-electric and plug-in hybrid vehicles as it seeks to comply with upcoming stringent rules in China. The group, which includes Volkswagen AG and Audi AG, intends to launch 15 of the new energy vehicles (NEV) models over the next two to three years, with an additional 25 after 2025. China’s NEV production and sales quotas, which must be met by 2019, have prompted an increase in electric car partnerships and deals as automakers in China race to ensure they do not fall short. China chief, Jochem Heizmann, speaking ahead of the Guangzhou auto show, added that the group is aiming to sell 400,000 new energy vehicles per year in China by 2020 and 1.5 million per year by 2025. The Volkswagen Group is also confident that its group companies and their local China joint venture partners will be able to generate enough NEV sales volume to account for NEV quotas by 2019, Heizmann said, adding that there will be no need to buy credits. The Guangzhou auto show starts on Friday.