"We are consistently optimizing our production network in China to align with our long-term electric mobility strategy," a company spokesperson stated. The decision to close the plant is part of ongoing efficiency measures and a clear focus on future-oriented technologies.
The Nanjing facility began operations in 2008 and reached an annual production capacity of approximately 300,000 vehicles by 2011. Most recently, models such as the VW Passat and the Škoda Superb were manufactured at the site. Due to its central urban location, the plant was not suitable for conversion to e-mobility production, which led to the decision to shut it down. Remaining production will be transferred to the nearby Yizheng plant.
Challenging Market Environment in China
Volkswagen continues to face growing competitive pressure in China, the world’s largest automotive market. In the first half of 2025, sales declined by 2.3 percent to around 1.3 million vehicles. The electric vehicle segment, in particular, has come under significant pressure, with local competitors such as BYD rapidly gaining market share.
“We are currently focusing on our profitable business with internal combustion engine vehicles,” the company said. This approach has already shown initial success, with rising sales figures reported in June.
Starting next year, Volkswagen plans to re-enter the Chinese EV market more aggressively with a new generation of electric vehicles, aiming to strengthen its position in this highly dynamic segment.
Source: www.volkswagengroupchina.com.cn
