Volkswagen announced the definitive closure of production at its factory in Nanjing, China, operated in partnership with SAIC. The plant, which previously produced models such as the Passat and Skoda Superb, suspended activities after a drop in sales and will officially close in the second half of 2025. Passat production will be transferred to another company unit.
Despite this, the joint venture SAIC Volkswagen continues to invest in electrifying its operations, with new electric models already in production and the launch of the Audi E5 Sportback expected later this year.
At the same time, Stellantis filed for bankruptcy of GAC-FCA, the joint venture with GAC for the production of Jeep models, marking the definitive end of the partnership terminated in 2022. Since then, the brand’s vehicles have been imported. The decision highlights the challenges faced by Western automakers competing with Chinese companies dominating the domestic market, such as BYD, which has led sales in the country since 2023.
In June 2025, BYD surpassed 382 thousand units sold in the month and has already accumulated 2.1 million vehicles this year, a 33% growth compared to 2024. Other Chinese brands, such as Xpeng, NIO, and Xiaomi, are also gaining ground with cutting-edge technology and greater range.
Faced with the rapid rise of these companies and market transformation, traditional automakers face the challenge of reinventing themselves to maintain relevance in China.
Source: InsideEVS | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team
