German automaker Volkswagen is once again doubling down on its investment in China by increasing its stake in one of its Chinese joint ventures. According to a document filed by JAC Motors with the Shanghai Stock Exchange on Wednesday, Volkswagen has increased its stake in its JAC Volkswagen joint venture from 50 percent to 75 percent.

The transaction to increase its stake in the joint venture company had involved an injection of funds of around 5.22 billion yuan or roughly $748.5 million. As part of the deal, JAC Motors had also agreed to make an additional investment of around 1.28 billion yuan. The deal is expected to be completed before the end of this year.

The increase in its stake in the joint venture company and the injection of new funds are part of an agreement that was signed between Volkswagen and JAC Motors last month. The goal of the agreement was to accelerate the electrification of the joint venture in order to meet the growing demand for new energy vehicles in China.

Once the deal is completed, Volkswagen will reportedly be introducing four to five new fully-electric models into JAC Volkswagen's lineup. Production of the vehicles along with other electric models will also be scaled up significantly, with both companies aiming for the joint venture to have a production capacity of around 250,000 vehicles by 2025.

Volkswagen Group China CEO Stephan Woellenstein clarified in a statement that their strategy should not interfere with its other joint venture. He added that they have already laid out plans to make sure that JAC Volkswagen's products will not be directly competing with its other joint ventures with SAIC Motor and FAW Group.

Apart from its JAC Volkswagen joint venture, the German automaker has also laid out plans to accelerate the electrification of its other joint ventures. Woellenstein stated that two fully-electric models using its MEB platform should become available to the public before spring. He did not clarify which joint ventures would be releasing the new models or what the company's plans were to avoid head-on competition between its partner companies.

Volkswagen previously stated that it plans to produce and sell at least 1.5 million new energy vehicles in China by 2025. The company estimates that it will require an investment of no less than $1.8 billion to achieve its goals. Volkswagen continues to be one of the largest foreign automakers in China, occupying about 20 percent of the country's vehicle market as of this year.