The latest focus of the partnership, which also includes building electric vehicles under VW’s Seat brand, is developing autonomous vehicles in China.
VW’s China subsidiary and JAC will pool resources and collaborate to provide autonomous mobility services, including robotaxis and autonomous fleet management, VW said.
VW did not provide a time frame for launching self-driving vehicles in the city.
In 2017, VW and JAC established a joint venture todevelop and produce EVs under the Seat brand and the joint venture’s proprietary Sol brand.
Seat’s locally produced EVs will go on sale in two to three years, according to VW.
Earlier this year, it was reported that VW was exploring the possibility of purchasing a big stake in JAC following a change in rules allowing foreign automakers to increase their stakes in their Chinese joint-venture partners or in the ventures themselves.
JAC is VW’s third joint-venture partner in China.
VW also operates passenger-vehicle joint ventures with SAIC Motor and China FAW Group.