FAW-Volkswagen Qingdao copyChina - The new plants, which are being built in Qingdao, Tianjin and Foshan, will be operated as part of the joint venture between FAW Group and Volkswagen Group. They will house the production of SUVs and electrified models, with the company suggesting that both segments will grow significantly over the next few years.

"Chinese consumers today are demonstrating strong demand for smart, sustainable electric vehicles as well as fun-to-drive, spacious SUVs," said Herbert Diess, chairman of the board of management and CEO of VW. "The Volkswagen Group is committed to the China market, our largest market globally, and we will continue to provide high quality products."

The production lines at these facilities are being designed with flexibility in mind, ensuring that they can make both pure electric vehicles and those that include an internal combustion engine (ICE). The Qingdao plant has started with the production of the new Bora, while the Foshan plant will make cars based on both the MQB and MEB platforms.

The news comes soon after VW said it would launch 40 new energy vehicles (NEVs) in China by 2025. Local production will be a key part of this plan, and the OEM has said that it will spend €15 billion (US$17.37 billion) alongside its joint venture partners to in e-mobility, autonomous driving and new mobility projects.

VW recently announced that it would make pure electric vehicles in 16 different locations around the world.