On Saturday, a top Volkswagen AG (VOWG p.DE) China official reaffirmed the German automaker’s commitment to accelerate electrification in the world’s second-biggest economy despite competition and lackluster demand.
Stefan Mecha, the Volkswagen brand CEO in China, told China’s EV 100 event in Beijing that VW will invest 15 billion euros ($16.26 billion) in electric mobility in China with its three joint ventures by 2024.
“New, very competitive firms fill the market, but intense competition merely encourages us to always develop and better,” Mecha added.
He noted that the business expects a comeback in China despite weaker short-term demand.
BYD outsold Volkswagen-branded automobiles in the world’s largest auto market for the second month.
As part of its policy support for the industry, Mecha encouraged China to prolong a purchase tax exemption on new energy vehicles (NEVs), including pure electric and plug-in hybrid automobiles, beyond this year.
China extended such car tax exemptions through 2023 in September.
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