(ANSA-AFP) - BEIJING, 29 MAY - Volkswagen said on Friday
it will invest around 2 billion euros ($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. China's industry ministry said in
December the country should seek to ensure one in four of all
vehicles sold in 2025 were either hybrids or fully-electric
vehicles. And Beijing decided in late March to extend the tax
exemption for the purchase of electric vehicles by two
years.(ANSA-AFP) (ANSA).
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