BEIJING (AFP) - Volkswagen said yesterday it will invest around 2 billion euros (US$ 2.2 billion) in two Chinese companies in the electric vehicle sector, calling it “the world’s biggest market”.
The German car giant said it will take a 50 percent stake in JAG -- the parent company of state-owned JAC Motors - and increase its holding in the JAC Volkswagen joint venture from 50 percent to 75 percent for around 1 billion euros.
The group said in a statement that “by gaining management control, Volkswagen is paving the way for more electric models and infrastructure”.
It will also buy a 26 percent share of Chinese battery supplier Gotion High-Tech for 1.1 billion euros. China, which accounts for 40 percent of Volkswagen’s sales, has become the world’s largest auto market in recent years, with Beijing repeatedly pledging to support the electric vehicle industry.