The Future of Cars is in the Hands of China. Germany Car Manufacturers Want to Invest

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Volkswagen and BMW, two of Germany’s top car manufacturers have signed a number of deals in China to continue making self-driving and electric cars in the country.

The signing of these deals coincided with the trip Li Keqiang, China’s Prime Minister, made to Berlin, and also reflects the growing notion that the future of the car industry is in China’s hands.

The International Organization of Motor Vehicle Manufacturers has reported that 25 million passenger vehicles were manufactured in China in the past year alone. Many car companies know that China is a top market for their vehicles, and compared to other countries, China’s drivers buy more electric cars than anywhere else.

In fact, just this week, six deals have been announced by Volkswagen and BMW.

This Tuesday, $17.6 billion (€15 billion) was pledged by Volkswagen to conduct research on things like autonomous driving, connectivity and e-mobility. With this deal, Volkswagen is in the process of “systematically expanding its partnerships” with China, according to Herbert Diess, the CEO of the company.

While this was happening, BMW was in the final stages of sealing their deal with Great Wall Motor to manufacture electric Minis in China. Furthermore, BMW became a board member of the Apollo, which is a project by Baidu, one of China’s internet firms, concentrating on autonomous driving.

China is now the world leader when it comes to electric vehicles, thanks to the government’s initiative to give the tech industry a boost and minimize pollution in the country.  With the conviction of the government and these two top car manufacturers, China will remain the world leader for years to come.

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