Volkswagen to pump 15 billion euros into China's electric cars

FRANKFURT AM MAIN: German car giant Volkswagen on Monday announced a fresh 15 billion euro ($17.5 billion) splurge on China's vast electric vehicle potential. Global car makers are pegging hopes on an increasingly electric future with China at the forefront as a customer base and manufacturing hub.

Beijing has targeted a 25 percent adoption of energy-saving vehicles by 2025. Volkswagon's committment - made with its three Chinese joint ventures - see the firm double down on EV car manufacturing and the linked infrastructure between 2020 and 2024 and takes its total investment in the sector to nearly 40 billion euros.

China accounts for around 40 percent of the Wolfsburg-based automaker's sales and has become the world's largest car market in recent years. The group's stable of 12 brands includes names such as Porsche and Audi.

Fifteen "models across the group's brands will be produced locally in China" by 2025 Volkswagen said in a statement and "35 percent of its product portfolio in the country will be electrified models."