Teh German automobile concern Volkswagen and his Chinese partner Saic ended production at the Chinese plant in Nanjing due to weakening demand for cars with an internal combustion engine, the plant will be closed. Volkswagen spokesman told AFP on Friday. The Škoda cars were also produced in the race. This is the first time that Volkswagen fully closes the race in China.
Berlin
The factory in Nanjing started production in 2008 | Source: Reuters
The spokesman confirmed the report brought by the German newspaper Handelsblatt.Definitive closure should be gradual and will be completed in the second half of the year. The remaining production will be moved to the neighboring plant in I-Shyng.
Even the Chinese Švejku. By switching to the electromobility of China, Europe has been overwhelmed, describing the expert.
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Volkswagen Scales Back China Production Amidst EV surge
Volkswagen is adjusting its manufacturing footprint in China, announcing the closure of its Nanjing plant as demand shifts towards electric vehicles produced by domestic brands. This decision reflects a broader trend of established automakers facing increased competition in the world’s largest automotive market.The company reported a significant decline in vehicle deliveries in China during the first half of 2025,though the rate of decrease is slightly less pronounced than the 7.4% drop experienced during the same period last year.
Adapting to a Changing Market Landscape
The Nanjing facility, which commenced operations in 2008 and onc boasted an annual production capacity of 300,000 vehicles, has been a key site for models like the VW Passat, Škoda Superb, and Škoda Kamiq. However, the rapid growth of Chinese EV manufacturers, notably BYD, is reshaping consumer preferences. BYD,as a notable example,saw a staggering 30.6% increase in new energy vehicle sales in June 2025 alone, surpassing many international competitors. This surge in demand for locally produced EVs is directly impacting the sales of traditional internal combustion engine (ICE) vehicles.
Recent data indicates that the Chinese automotive market is undergoing a dramatic conversion. In 2024, EVs and plug-in hybrids accounted for over 35% of all new car sales in China – a figure projected to exceed 50% by 2027, according to the China Association of Automobile Manufacturers (CAAM).This shift is driven by government incentives, improving charging infrastructure, and a growing consumer preference for environmentally amiable transportation options.
Škoda’s production and Future Outlook
The impact of these market dynamics is also visible in Škoda Auto’s production figures.The company’s 2024 report reveals a total production output of just 15,200 vehicles at the Nanjing plant. While Volkswagen hasn’t explicitly stated a complete withdrawal from ICE vehicle production in China, the closure of the Nanjing plant signals a strategic realignment towards electrification and a potential consolidation of manufacturing operations.
This move is part of a wider industry trend.Several international automakers are now investing heavily in establishing dedicated EV production facilities in China, often through joint ventures with local partners, to remain competitive. The future success of these companies will depend on their ability to innovate and offer compelling EV models that cater to the evolving needs of Chinese consumers.