Volkswagen has sold its plant in Xinjiang, a region in northwestern China beset by accusations of human rights abuses, citing "economic reasons".
A spokesperson said there is no business case for the plant, noting that it produced combustion engine vehicles until 2019 and, since then, has effectively operated as a distribution centre for models produced in other factories.
Citing "huge pressure" from rival carmakers that churn out electric vehicles, the spokesperson said Volkswagen needs to accelerate the transformation of its production network, adding that demand for combustion engine vehicles is going down.
Sales of electric cars are rising in many countries and according to the International Energy Agency, they could account for 45% of all car sales in China this year.
The German automaker announced the sale of the facility, which it owns as part of a joint venture with China's SAIC Motor on Wednesday.
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