Volkswagen & JAC To Build An Electric Car Factory In Hefei

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JAC Volkswagen Automotive Co., which is the joint venture between JAC (Jianghuai Automobile Co.) and Volkswagen, is planning on investing 5.06 billion yuan ($750.8 million) into a new electric car factory in Hefei, Anhui, China, according to authorities in Hefei.

Documents from the National Hefei Economic and Technological Development Area were posted online on the 22nd of April, which showed that the joint venture received approval to build a plant that can produce 100,000 all-electric vehicles per year.


The documents also included some location details, but not an address, per se. These are the details:

拟建地点:合肥经济技术开发区莲花路以东、宿松路以西、珠江路以南及以北地块。(The proposed site is located in the east of Lianhua Road in Hefei Economic and Technological Development Zone, west of Susong Road, south of Zhujiang Road and north of the block.)

That info meant I could technically track down the location of the factory construction site, even in person if I could find the time.

Below is the Google map location, including a 2019 aerial photography overlay and road map. Please note that all maps in Google maps in China are intentionally misaligned, which is why the aerial photography and map are offset.


Aerial photography:

Photos: Not yet

Drone video: No Tesla, No drone.

The background

JAC and Volkswagen have been building up a joint venture since 2016, with the first news of the joint venture coming out in September and October of that year. In November 2017, Volkswagen announced a $12 billion investment into EVs with JAC in China over seven years.

In April of 2018, the first car of this joint venture was rumoured, and then announced at the 2018 Beijing Auto Show. It was the SOL E20X. The SOL E20X is most likely based on the existing JAC iEV7S.

In November of 2018, JAC and Volkswagen signed a memorandum of understanding to develop an electric vehicle research and development centre in Hefei, and in December they broke ground.

We also know that the SOL E20X is only the first in three planned EVs for the JAC Volkswagen joint venture, and that the SOL E20X is already being produced and running around Hefei as part of the JAC ride-hailing app service. The SOL EX20X is expected to cost around 119,500 yuan ($19,000) after incentives.

Now we get the news that they are starting the process of building the specialized electric vehicle factory.

Volkswagen and JAC

JAC has its own plans for electrification and its own iEV program, which is converting its existing models to battery electric powertrains.

This includes two sedans, two SUVs, two compact cars, three trucks, and a pickup truck.

JAC is also working with NIO and Volkswagen to manufacture electric cars in Hefei for the Chinese market.

The Volkswagen Group has made clear it has big plans for electrification and a large portion of those plans are focused on China. In March, the conglomerate announced a plan that it intends to produce and sell 22 million electric vehicles by 2028, with many of those vehicles being made in China.

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Tim Dixon

When not researching the Chinese electric car market, I am teaching in China. My interest in sustainable development started in University and it led me to work with Tesla Europe in the Supercharger team. I'm interested in science fiction, D&D, and travel. You can follow me on Twitter @TimDixon3.

Tim Dixon has 62 posts and counting. See all posts by Tim Dixon