Around €1 billion is to be invested towards this purpose that includes acquisition of 50 percent of JAG, the parent company of the Volkswagen partner JAC, and an increase in the stake in JAC Volkswagen from 50 to 75 percent. By gaining Management control, Volkswagen is paving the way for more electric models and infrastructure.

In addition, Volkswagen will acquire a 26 percent stake in battery manufacturer Gotion High-Tech Co., Ltd. for around €1 billion, becoming the company’s largest shareholder.

Dr Herbert Diess, CEO of Volkswagen AG, said, “Together with strong and reliable partners, Volkswagen is strengthening its electrification strategy in China. The electric cars segment is growing rapidly and offers a great deal of potential for JAC Volkswagen. We are actively driving forward the development of battery cells in China through our strategic investment in Gotion.”

Dr Stephan Wöllenstein, CEO of Volkswagen Group China, said, “I am delighted with this strategic milestone in our mutual and trusted relations as Volkswagen takes a strategic role in a state- owned company for the first time, as well as investing direct in a Chinese battery supplier. These investments shape the character of Volkswagen in China, making it a more localized, more sustainability-focused mobility company. By opening up the market, China is giving Volkswagen new business opportunities.” Volkswagen Group China has already outlined its route to becoming a net carbon-neutral company. In 2025, around 1.5 million NEVs are planned for delivery to customers across the country. China is the world´s biggest market for e-mobility.

Transformation  

By strengthening its position and advancing the JAC Volkswagen joint venture through a capital increase, Volkswagen is taking the next step in its Chinese electrification strategy. Letters of intent were co-signed by Volkswagen (China) Investment Co. Ltd. and the Government of Anhui province, which foresee Volkswagen raising its stake from 50 percent to 75 percent within the JAC Volkswagen joint venture via a capital increase. To make this possible, the group will also be investing in the Anhui Government-owned entity JAG, the parent company of JAC. The parties intend to close the deal amounting to €1 billion by the end of the year, subject to customary regulatory approvals.

Founded in 2017, the JAC Volkswagen joint venture is an all-electric company which develops, produces and sells NEVs. A portfolio expansion of up to five additional BEV models by 2025 is planned, as well as building a full-scale e-model factory and finishing the R&D center in Hefei.

Securing Battery Supply

Volkswagen has found a further partner to secure future demand for batteries for its Chinese e- models. With the signing of binding agreements, Volkswagen (China) Investment Co Ltd will become the largest shareholder in Gotion, with 26 percent of the shares, through a buy-in of around €1.1 billion. It is the first global automaker to invest direct in a Chinese battery supplier. It is planned to complete the deal by the end of 2020, subject to customary regulatory approvals.

The partnership is an opportunity for Volkswagen to achieve deeper know-how in the field of batteries. Gotion maintains various current and future projects over the entire battery value chain from sourcing, development and production to recycling. The company is in the process of becoming a certified Volkswagen Group battery supplier in China, including supplies for local MEB vehicles.

The MEB is the new modular electric vehicle platform of the Volkswagen Group. The deal will not affect ongoing contracts with other battery suppliers. (MT)

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Mahindra & Mahindra Ltd has revealed that it will launch the XUV 7XO, which is based on the XUV 700, on 05 January 2026. A premium SUV segment vehicle, the XUV 7XO, the company claims, will be a gamechanger. Said to have been crafted to inspire and engineered to excite, combining the proven strengths of the XUV700 with superior design, technology, comfort and performance, the XUV 7XO is expected to be a feature a fascia with the new signature grille design and '7'-shape sleeker LED head lamps. 
Claimed to draw an amount of design and styling details from the new seven-seater electric SUV the company introduced recently, the XUV 7XO is expected to built on the technologies that made the XUV 700 a competitively priced tech savvy SUV with monocoque construction and an option of an AWD. As an ICE vehicle the 7XO is expected to further the gamut of features found on the XUV 700, including the ADAS Level 2 suite. 

The XUV 7XO is expected to replace the XUV 700 over a period of time if not immediately. 

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BMW India has enhanced its top-selling premium electric vehicle, the locally produced iX1 Long Wheelbase, with a new exterior colour and expanded upholstery selections, available for booking nationwide. The model now presents a fresh Night Dusk Blue metallic paint, deepening its sophisticated and commanding aesthetic alongside existing shades like Carbon Black and Mineral White. Inside, the cabin gains two new sustainably sourced vegan leather options: Veganza Smoke White + Atlas Grey dual tone and Veganza Castanea. These are distinguished by a premium 3D stitching pattern, emphasising both craftsmanship and modern, eco-conscious luxury.

A defining interior design philosophy, the 'Cocooning Effect’, extends the chosen upholstery colour cohesively across the cabin. This approach envelops the door panels, dashboard and speaker mesh, creating a harmonious and immersive environment that is both plush and visually continuous. The iX1 LWB’s interior is characterised by a spacious, modern design that merges innovative functionality with superior materials.

As the brand’s highest-selling electric model, the iX1 has been pivotal to BMW’s leadership in India’s luxury EV segment. The company has consistently adapted the vehicle to market preferences, introducing features like the Surround View Camera and now refreshing its colour and trim options. In under a year, it has become the best-selling electric vehicle in its premium category.

The vehicle combines practicality with sustainability, boasting segment-leading dimensions that make it one of the longest five-seater SUVs in India. Its bold exterior stance is matched by advanced fifth-generation BMW eDrive technology. This integrated drive unit delivers 204 horsepower and 250 Nm of torque, powered by a 66.4 kWh battery capable of up to 531 kilometres on a single charge. Features like adaptive recuperation and one-pedal driving further enhance efficiency and convenience, solidifying its position as a comprehensive premium electric package.

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In what may come as a surprise to many, the made-in-India Hyundai Grand i10 has scored a zero star rating for adult occupant protection in Global NCAP’s #SaferCarsForAfrica campaign.

While the model did score three stars for child occupant protection, the test identified shortcomings in adult occupant protection, which resulted in a risk of life-threatening injuries. The Indian-built model was tested as part of the campaign and the results are valid for South Africa.

The Hyundai’s standard safety equipment includes driver and passenger frontal airbags, but none for side body or head protection, and no Electronic Stability Control (ESC).

The crash test report noted the following:

• Weak protection was concerning for the driver’s chest in the frontal impact test.
• The side impact test indicated a high risk of non-recoverable chest injuries, leading to a strong probability of life-threatening injuries for the adult occupant. Maximum allowed injury levels in a body region such as the chest were exceeded, resulting in zero points for adult occupant protection.
• In the frontal impact test, the bodyshell and footwell were rated as unstable and could not withstand further loading.
• There was no standard side body or head protection, and the Seat Belt Reminder (SBR) was only for the driver.
• There was no standard ESC.

Richard Woods, Chief Executive Officer, Global NCAP, said, “It is unacceptable to see the continued double standard on safety in low and middle-income countries. Democratising vehicle safety in Africa is a Global NCAP priority, and consumers deserve safer vehicles regardless of where in the world they live.”

Bobby Ramagwede, CEO, Automobile Association of South Africa, said, “These results are deeply concerning and highlight a continuing pattern in which vehicles sold in Africa do not meet the same safety standards applied in other regions. South African motorists deserve better. The Hyundai Grand i10’s zero-star rating reinforces the urgent need for manufacturers to commit to equal safety for all markets. This result underlines why Africa urgently needs stronger regulatory standards and greater manufacturer accountability. The AA believes no vehicle should be sold here without side protection systems and Electronic Stability Control as standard. Safety should never be optional, and certainly not reserved for markets outside Africa.”

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Japanese luxury brand Lexus India has introduced a new ‘Exquisite’ grade to its RX 350h line-up, strengthening the model’s presence in the luxury SUV segment.

The new RX 350h Exquisite grade starts at INR 8.99 million (ex-showroom), which goes up to INR 10.09 million (ex-showroom).

The RX 350h Exquisite grade features Lexus’ hybrid system, which combines a highly efficient 2.5-litre inline 4-cylinder engine and high-output motor. It includes a bipolar nickel-metal hydride battery with enhanced performance. On the inside, it gets 10-way power adjusted front seats, heated and ventilated seating for front & rear seats and ambient lighting.

The RX 500h F-SPORT grade is the only Performance Hybrid Electric Turbocharged Luxury SUV in India. The 2.4 L-T HEV on the RX 500h features a front unit integrating a 2.4-L turbocharged engine, motor, a 6-speed automatic transmission and an eAxle with a built-in high output motor driving the rear wheels. The RX 500h features Dynamic Rear-Wheel Steering and DIRECT4 technology for acceleration.

The RX features a Mark Levinson 21-speaker audio system and offers Lexus Safety System+ with Dynamic Radar Cruise Control, Cross Traffic Alert and Safe Exit Assist with Blind Spot Monitor.

Between January and November this year, the RX model recorded 12 percent growth, reflecting rising demand for luxury SUVs in the country. During the same period, SUVs contributed about 40 percent to Lexus India’s overall performance, underscoring the RX’s pivotal role in driving the brand’s momentum.

Hikaru Ikeuchi, President, Lexus India, said, ‘The Lexus RX represents our dedication to luxury, design, performance, and sustainable mobility. As the luxury SUV segment continues to grow, the introduction of the new Exquisite grade allows us to offer guests a wider range of options and features to choose from. This enhancement reflects our continued commitment to expanding our portfolio and elevating the Lexus experience in India, supported by advanced technology and a guest-first philosophy.”

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