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Auto industry pulls out stops to tackle slumping sales

China Daily | Updated: 2019-12-30 14:10
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SEAT plans to return to China

Spain's largest carmaker SEAT is set to make a comeback in China around 2021, its parent company Volkswagen announced in May.

SEAT pulled out of China in 2014 after two years of poor sales of its gasoline vehicles.

This time, it will enter the Chinese market through JAC Volkswagen, a 50-50 joint venture established in Hefei, Anhui province, in 2017 to develop, produce and sell pure battery vehicles.

A spokesperson at Volkswagen China said SEAT is scheduled to become a shareholder of the joint venture by the end of 2019, holding at least 1 percent of its equity.

Currently, JAC, Volkswagen and SEAT are building a 4 billion yuan ($579 million) research and development center in Hefei, which is expected to open in 2021.

JAC and SEAT also plan to develop their own platform for smaller electric cars, a segment that is growing faster than the large-sized ones in China.

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