JAC Motors and Volkswagen China are gearing up for a significant capital increase in their joint venture, Volkswagen Anhui, with plans to invest approximately 826 million euros over the next two years.
Currently, Volkswagen holds a 75 percent stake in Volkswagen Anhui, while JAC Motors holds the remaining 25 percent. This ownership structure will remain unchanged after the capital increase, with both companies investing at the same ratio. Volkswagen is set to invest 4.875 billion yuan, while JAC will invest 1.625 billion yuan, totaling 6.5 billion yuan or approximately 826 million euros.
According to reports from Gasgoo, citing official statements from JAC, the new capital injection will raise the joint venture’s share capital from 7.36 billion yuan to 13.86 billion yuan, equivalent to around 1.76 billion euros. The investment aims to deepen strategic cooperation between JAC and Volkswagen China, enhancing Volkswagen Anhui’s overall capabilities and resilience against market volatilities.
Formerly known as JAC-Volkswagen, the joint venture underwent a name change after Volkswagen acquired a majority stake in 2020. The new name, Volkswagen Anhui, reflects the province where the headquarters are located. Production at the Anhui plant commenced at the end of 2023, with the production of the Cupra Tavascan, among other models, slated for global markets. The joint venture plans to seek approval from relevant authorities for the Chinese version of this model, known as the ID.UNYX. Additionally, another Volkswagen brand model is set to launch at the Chinese plant later this year.
