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Volkswagen Anhui, the offspring of a German-Chinese automotive alliance, has kicked off the production of the Cupra Tavascan destined for European roads. The company, created in 2017 as a collaboration between Volkswagen and Anhui Jianghuai Automobile Group (JAC), recently unveiled its plans to leverage the local industry chain’s prowess for EV manufacturing, designed to cater to the discerning tastes of both European and Chinese consumers.
This is an interesting move, and it comes as part of Volkswagen’s grand strategy to electrify its lineup, with a specific focus on the flourishing EV market in China.
Tavascan production coincides with Volkswagen Anhui’s inauguration of its third MEB plant in China. The plant broke ground in April 2021 and has been humming with activity since March 2022.
While the Cupra Tavascan is ready for its European customers, another Volkswagen-branded model, designed specifically for the busy Chinese market, is slated to join the assembly line in 2024.
Volkswagen’s footprint in China spans four decades, with two joint ventures, SAIC-Volkswagen and FAW-Volkswagen, basking in the glory of success in the fuel-centric era. However, as the global automotive landscape tilts towards electrification, Volkswagen Anhui emerges as the company’s attempt to stay relevant in the fast-shifting market.
With a total investment of RMB 23.1 billion yuan (£2.63 billion) earmarked for Anhui, Volkswagen is not just building cars but is also shaping the future of electric mobility in the region. Anhui, specifically Hefei, is not merely a production hub; it is Volkswagen’s inaugural global center for new energy vehicle R&D, innovation, and component sourcing beyond the confines of its German headquarters.
In a Bloomberg report from last year, it was revealed that Volkswagen plans to export EVs manufactured in China to the European market. The rationale behind this move is attributed to limited capacity in Volkswagen’s home market. And that’s where it gets strange – because according to the European narrative, VW is struggling to sell cars in its native market to the point it had to shut the production on a couple of occasions.
It gets even stranger with Volkswagen being behind the lobbying effort that pushed the EU Commission to start the wide-ranging investigation into Chinese EV manufacturers, accusing them of unfair practices. All that while VW was preparing to start production in China for EVs destined for Europe.
As the Cupra Tavascan inches closer to European roads, Volkswagen Anhui’s foray into the electric future raises more questions than it gives answers. It seems the only way VW can stay afloat is to move production to China – but even in the Chinese market, the company is not having much luck, with the ID.7 Vizzion having a rather disappointing start. Maybe production costs are just a part of the puzzle? Maybe, just maybe, VW should look at its products closely and realize that something’s off?
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