On June 11, Volkswagen Group signed an investment agreement and a product portfolio framework agreement with JAC. After the completion of the relevant transaction, Volkswagen (China) Investment Co., Ltd. will hold 75% of the shares of JAC Volkswagen. In terms of products, Volkswagen group promises to grant JAC Volkswagen 4-5 pure electric models. Meanwhile, Volkswagen Group promises to consider the production of plug-in hybrid vehicles and fuel vehicles such as B-class and C-class cars in JAC Volkswagen in the future.

It is not difficult to see that Volkswagen will put at least 6-7 models, including electric cars and fuel cars, into production in JAC later. In addition, VW B-class and C-class cars are expected to be "Passat" and "Faang" versions of JAC Volkswagen. It is worth mentioning that jAC Auto's 2019 annual report shows that its planned passenger vehicle production capacity is 450,000 units per year, but the vacancy rate is as high as 62.53%. This means that jAC Volkswagen will not add new capacity in the future, but will carry out technical renovation of its existing passenger vehicle factory in Hefei. (Below are SAIC Volkswagen Passat and Faeon)

In addition, according to the official statement, jAC Volkswagen aims to produce 200,000 to 250,000 electric cars for 4-5 electric cars by 2025, and the total revenue is expected to reach 30 billion yuan respectively by then. This means that the average selling price of these electric vehicles will be controlled in the range of 100,000 to 120,000 yuan, which is also in line with its plan to focus on the middle and low-end electric vehicle market.