Volkswagen To Close Nanjing Plant by 2025 As China Shifts To EVs

After more than 15 years of operation, Volkswagen is officially winding things down at its Nanjing plant in China—and it’s not hard to see why.

The factory, which opened in 2008 as part of a joint venture with SAIC, was once a major hub for building gas- and diesel-powered vehicles. At full tilt, it could churn out up to 360,000 cars a year. But with China shifting gears quickly toward electric vehicles, the demand for traditional engines just isn’t what it used to be.

VW recently confirmed that production at the plant has already stopped. The full closure is set for the end of 2025. The decision is part of a bigger plan to pivot toward EVs in China, where the market is evolving at breakneck speed. Rather than building new factories from scratch, Volkswagen plans to rework some of its current facilities to handle electric vehicle production instead.

This change is a big deal, but it’s also just one piece of the puzzle. Volkswagen has a massive presence in China, with 39 factories and around 90,000 employees. For them, China isn’t just a big market—it’s a critical one. But as more buyers there turn to EVs, even longtime players like VW are having to rethink how (and where) they build cars.

The Nanjing closure might sound like bad news, but in many ways, it’s VW trying to stay one step ahead. The company clearly sees which way the wind is blowing—and it’s all-electric.

In the end, it’s a sign of the times. The industry is changing fast, and automakers are having to move with it. For VW, that means saying goodbye to Nanjing and looking ahead to a very different kind of future.