The series of moves made foreign car brands in the Chinese market come as China has issued a number of policies to boost the EV sector as well as the broad auto industry, as a part of efforts to stabilize the economy amid disruptions posed by COVID-19.
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Volkswagen Anhui told the Global Times that it is pushing ahead with production at full speed and production is expected to start in the second half of 2023.
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Separately, Volkswagen Anhui, a EV-focused joint venture of the German automaker in East China's Anhui Province, saw its first body-in-white car come off the assembly line on Wednesday, an important sign of progress in the trial production of Volkswagen Anhui's first new-energy model.
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The goal is to have the factory in operation in 2024 with an annual production capacity of 120,000 units. Honda Motor Co said on Tuesday that its joint venture in China with Guangzhou Automobile Group has begun building an EV plant in Guangdong, which has an initial investment of 3.49 billion yuan. The opening of BMW's plant followed the groundbreaking for a new electric vehicle (EV) assembly plant of Japanese carmaker Honda in South China's Guangdong Province.
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With an investment of 15 billion yuan ($2.2 billion), the plant is the biggest single investment in BMW's history in China, according to a statement sent by the group to the Global Times. On Thursday, BMW Brilliance's Plant Lydia was officially opened in Shenyang, Northeast China's Jilin Province. Global carmakers, including BMW, Honda and Volkswagen, have announced plans for new factories and expanded production in China, confirming their long-term commitment to and confidence in the Chinese market, bolstered by an accelerated recovery in China's auto market, the largest in the world, and a vast potential for growth. China produced 466,000 NEVs in May, with 447,000 sold, both up 1.1 times from the year before, industry data showed. Visitors pass by a new-energy vehicle (NEV) and smart car show as it kicks off in Shenyang, capital of Northeast China's Liaoning Province on June 21, 2022.