© Reuters. FILE PHOTO: Volkswagen’s logo is seen as it launches its ID.6 and ID.6 CROZZ SUVs at a world premiere ahead of the Shanghai Auto Show, in Shanghai, China, April 18, 2021. REUTERS/Aly Song/File Photo
SHANGHAI (Reuters) – A senior executive at Volkswagen AG (OTC: ) China reiterated on Saturday the German carmaker’s commitment to accelerating the pace of electrification in the world’s second-largest economy despite problems such as increased competition and weak demand.
VW plans to increase the number of electric vehicle charging stations in China to 17,000 by 2025, as it plans to invest 15 billion euros ($16.26 billion) in the country in electric mobility along with its three joint ventures by 2024, Stefan Mecha, chief CEO of the Volkswagen (ETR:) brand in China, told the EV 100 China Forum in Beijing.
“The market is full of new, highly competitive players, but strong competition simply motivates us to constantly innovate and improve,” said Mecha.
He added that despite reduced short-term demand in China, the company is confident that there will be a recovery.
In February, Chinese electric vehicle maker BYD surpassed sales of Volkswagen to become the best-selling passenger car brand in the world’s largest car market for the second month in four months.
Mecha also called on China to extend the tax exemption on the purchase of new energy vehicles (NEVs), which includes both pure electric and plug-in hybrid cars, beyond this year as part of a policy to support the sector.
In September, China extended the tax exemption on such vehicles for one year until the end of 2023.
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