China, Germany fast-track win-win alliance in NEV sector

SHENZHEN - Stefan Schweitzer, a German official, lauded recently China's automotive industry, specifically highlighting its global leadership in integrating electric vehicles with mobile phones.

As the director of the Saarland Economic Development Board in Germany, Schweitzer made the remarks during his visits to Chinese new-energy vehicle companies in October.

With increasing collaborations between China and Germany in the new energy vehicles (NEVs) sector, both countries are fostering deep interaction and leveraging green development to attain mutual benefits and achieve win-win outcomes in the industry.

German luxury carmaker Audi AG has kept plowing money into China. Cooperating with China's leading automaker FAW Group Co Ltd the Audi FAW NEV project, with an investment of over 30 billion yuan (about $4.2 billion), broke ground in June 2022 in the northeastern Chinese city of Changchun.

This is Audi's first production base for purely electric vehicles in China and is expected to start operation at the end of 2024, with a planned annual production capacity of around 150,000 vehicles.

As a global leader in power systems and the Internet of Things (IoT), Infineon Technologies AG has seen Greater China account for 32 percent of its global revenue in the fiscal year 2023.

"The coming decade represents a period of 'double-wheel-drive' development, whereby decarbonization and digitalization are two critical drivers," said David Poon, senior vice-president of Infineon Technologies AG and president of Infineon Technologies Greater China.

"Through our 'integrated' innovation ecosystem, we hope to partner with local partners in the Greater China region to jointly support the sustainable development of society," Poon said.

Also, the expansion of Chinese enterprises in Germany has gained momentum, fostering a mutually beneficial "two-way rush."

China's high-tech company SVOLT Energy Technology Co Ltd headquartered in the city of Changzhou, East China's Jiangsu province, is set to establish a European battery module processing and assembly plant in Saarland, Germany, with an approximate investment of 2 billion euros (about $2.2 billion). Additionally, BYD has entered a partnership with SIXT, a German car rental company, committing to the procurement of 100,000 vehicles over the next six years.

"China leads the world in electric vehicles and is growing very fast globally. Adapting swiftly to China's leading position and its rapid global growth requires attention for all markets in the world," said Helmut Stettner, CEO of Audi FAW NEV Company Ltd.