The Volkswagen group is setting up a joint venture in China to build software for its vehicles to drive digitalization. This software will bring new features to Volkswagen vehicles, and building it will cost over 7 billion Yuan (~$984 million). We also understand that this move is part of the shake-up process currently going on in Volkswagen to ensure it perfectly fits into the competition.
As Volkswagen steps into the more competitive and ever-growing electric vehicle manufacturing industry, it needs to stand out from the crowd. Currently, the company has four electric vehicles to its name, each of which follows the manufacturer’s unique design trend. By stepping up the software capabilities of their vehicles, the Volkswagen group will have an upper hand in the EV market competition.
Read also: Volkswagen ID.4 all-electric flagship is already being assembled in the US.
With the plans of upscaling its EV production, Volkswagen is focusing on software which plays a vital role in its products. Volkswagen plans to become a major player in the EV industry by the year 2025 taking on strong competition from American and Chinese manufacturers. Already, Volkswagen has a strong user base, so stepping up its software as it moves fully into the EV industry will help pull its existing customers along.
Software is gradually becoming an important factor in vehicles, even more so with electric vehicles. The Volkswagen group investment made via a joint venture in China will help refine the experience the automobile manufacturer offers with its vehicles. We expect that this software goes into use with the company’s coming electric models in the years ahead.
