In a first step, Volkswagen will introduce two electric cars into Chinese market, although hybrids will remain the German automaker's priority in terms of new energy vehicles.

"This year we will import electric-Up first, and the e-Golf will follow", said President and CEO of Volkswagen Group China Jochem Heizmann.

Jochem Heizmann, president and CEO of Volkswagen Group China. CHINA DAILY

He said the challenge with electric cars is still the battery range. Battery technology will have to reach a higher and more sophisticated level.

In Europe so far e-cars are mainly used in the urban environment and for short distance. But people still rely very much on the conventional engines when it comes to long distance driving.

"So our strategy for the coming years is based on plug-in hybrids" said Heizmann.

He said the Porsche Panamera plug-in hybrid is already on the market and the Audi A6 plug-in hybrids will be made in China starting in 2016.

Hybrids do not require new infrastructure and that is a big advantage over other new energy models, he noted.

Citing the example of the upcoming Golf hybrid, he said it can be fully charged in six hours with home sockets and has a range of 50 kilometers.

"This is a range that's enough for inside the city, and if you are living a little bit further outside in the suburbs, it's normally also fine. And with a combustion engine as well, you have the flexibility to go out on the weekend into the mountains or visit friend's in another town."

Heizmann said Volkswagen will introduce some 20 plug-in hybrids in the next five years and the main volume will be locally produced.

He said there is a huge investment in research and development, localization and other things in the plant. "we are not talking about some million euros, we are talking about hundreds of millions of euros."

VW receives Chinese approval for two more plants - sources	Tax break for new-energy vehicles

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