The German automaker Volkswagen AG (VW) on Thursday made two big announcements about its future plans for China's auto market. The auto giant announced that it is likely to tie up with Didi Chuxing to form a high-end ride-hailing service and will focus more on sales of electric and hybrid vehicles to increase its market share in the Chinese market.

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Volkswagen did not elaborate on its plan to enter the ride hailing market but said that it is already in talks with officials of Didi Chuxing, China's largest ride-hailing company. The ride-hailing company stamped its authority in the domestic market, after buying Uber's operations in the country.

On sales of electric car or 'new energy vehicles' (NEV), Volkswagen said it aims to become one of the biggest players in this new market. The automaker has set the sales target of 400,000 cars till 2020 and 1.5 million vehicles till 2025.

"We have to do more in the NEV area. The government is pushing, the general environment in China is pushing that," Jochem Heizmann chief of VW's China's operations told reporters ahead of the Guangzhou auto show.

The German auto giant is all set to introduce its first 'made in China' NEV vehicle under its globally famous Audi brand. The vehicle will be manufactured in joint venture with China's state-owned auto company FAW Group.

Additionally, Volkswagen has tied up with SAIC Motor to manufacture more vehicles under Audi brand, while it is also exploring opportunities to enter in venture with Anhui Jianghuai Automobile (JAC Motor) to produce electric vehicles.

Heizmann said he is hopeful that the Chinese government would allow the firm to go on with three joint ventures in the country.

Volkswagen is not the only auto company that is planning to go green in a bid to increase its market share in the world's largest automarket. Other big companies like Hyundia, Honda, and General Motors have all announced big plans to capture the nascent but lucrative electric car market of China. 

Tagsvolkswagen, Volkswagen China, Didi Chuxing, Electric Car Market China