Image description

Volkswagen can now develop cars from start to finish in China, the German automotive giant said Tuesday, as it plots a fightback on the world’s largest market.

The company’s new test laboratories in the Chinese city of Hefei meant Chinese customers could now buy VW vehicles made entirely in the country, Volkswagen said — the first time in company history that new vehicles could be fully developed outside of Germany.


The new research centre in Hefei is Volkswagen’s only one dedicated exclusively to electric cars, the firm said, and it would also play a role in exports from China to South East Asia and the Middle East.

‘We are taking our development capabilities in China for China to the next level,’ Volkswagen China boss Ralf Brandstaetter said.

‘We are strengthening our ability to respond quickly to local needs and to shape technologies directly where they will be used.’

German carmakers have come under intense pressure from local competitors in China in recent years, with worldwide sales and profits suffering amid their slump in China.