Volkswagen has built a new hub in Hefei, capital of East China's Anhui province, covering the complete value chain from research and development to manufacturing, sales and service of NEVs.

Next to the production plant, two supplier parks have been set up, with 18 partners already moving in. "We are specifically utilising new technologies and the outstanding infrastructure of Anhui," said Erwin Gabardi, chief executive officer (CEO) of Volkswagen Anhui. "We will also benefit from this innovative strength."

Volkswagen is among several global companies that have consistently increased investments in China's emerging industries.

As China promotes industrial innovation with technological innovation, more high-quality, high-end, and technologically innovative industries are becoming the new magnet for foreign investment.

Data from the Ministry of Commerce show that the actual use of foreign investment in manufacturing rose 1.9% year-on-year to RMB 283.44 billion (US$ 39.84 billion) during the first 10 months, with that in high-tech manufacturing logging an increase of 9.5%.

"Take Anhui as an example, foreign enterprises here have expressed a definite willingness to expand investment in industries including high-end equipment manufacturing, new energy and other related sectors," said Wang Yaping, deputy general manager of Deloitte China's Hefei branch.

"According to a market survey by the company, the upgrading of China's consumer market and the enhancement of sci-tech innovation have continuously strengthened foreign enterprises' willingness to seek new businesses in China," Wang added.

As one of the most representative emerging industries of China, the booming NEV industry has attracted global automakers to expand investment and build a complete industrial chain in recent years.

With an investment exceeding RMB 7.5 billion, Volkswagen is establishing the Volkswagen Group China Technology, which will become the largest development centre outside Germany upon completion.

In November, the company announced plans to develop its first China-specific electric automobile platform.

"Over the years, we have consistently invested in facilities and platforms to support NEV production, R&D, and sales and service. With our 'in China for China strategy, we will develop much more technology here in the future. We will make better use of local innovative strength and respond more quickly to the needs of Chinese customers," Gabardi told media sources.

In May 2023, BMW Group's joint venture in China, BMW Brilliance Automotive, began construction of a new battery production plant in Shenyang, capital of Northeast China's Liaoning province.