VW Touts Up to 50% Development Cost Cuts for Some China EVs

Volkswagen AG said it will be able to slash electric vehicle development costs in China by as much as 50% for some models, bolstering the German automaker’s efforts to catch up with fast-moving local rivals such as BYD Co.

The manufacturer’s new €2.5 billion ($2.9 billion) test center in Hefei is enabling the reduction by integrating software, hardware and vehicle validation under one roof, VW said Tuesday. The efficiency gains, which also include 30% faster development, are measured against an older local EV platform. They’re possible in individual projects like one focusing on compact cars for the Chinese market.