Volkswagen is executing a significant strategic shift in China by selling its production facilities in the Xinjiang region to state-owned enterprise SMVIC. This move comes as the automotive giant's stock trades around €80, substantially below its 52-week high of €128.60. The transaction includes the transfer of the Urumqi plant, which has been dormant since 2019, along with test tracks in Turpan and Anting. This strategic realignment demonstrates Volkswagen's responsiveness to market dynamics while maintaining its commitment to the Chinese market, as evidenced by the extension of its partnership with SAIC until 2040.
Ambitious Growth Strategy
Looking ahead, Volkswagen has outlined an aggressive expansion plan for the Chinese market, targeting a 15% market share by 2030 with annual sales of four million vehicles. The company is set to launch a comprehensive product offensive beginning in 2026, introducing 18 new models specifically designed for Chinese consumers. This strategic initiative places particular emphasis on electric mobility, positioning Volkswagen to compete more effectively in China's rapidly evolving automotive landscape.
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Volkswagen Stock: New Analysis - 29 NovemberFresh Volkswagen information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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