(Yicai Global) Oct. 27 -- A joint venture between Volkswagen and Shanghai's SAIC Motor has opened the world's first factory that solely uses the German partner's modular electric drive matrix platform to make electric vehicles.

SAIC Volkswagen Automotive kicked off production at a new factory in the eastern Chinese city today, Shanghai Observer reported. The project investment reaches CNY170 billion (USD25.4 billion), which is CNY1 billion (USD149.2 million) more than that of the first phase of Tesla's Shanghai Gigafactory.

SAIC Volkswagen's new plant has more than 1,400 robots that are connected with industrial wireless networks and need no light to function. The designated annual output is 300,000 vehicles, which is 50,000 more than what Tesla's can produce after its initial phase in Shanghai.

Editor: Emmi Laine