It looks like Volkswagen is on its way to collaborate with Chinese ride-sharing company, Didi Chuxing in their bid to put up a high-end ride-hailing service.

While still struggling to fend off the brunt of the U.S. emissions-cheating scandal, VW also sounded off its bold sales goals for electric as well as hybrid vehicles in the biggest auto market in the world on Thursday, Nov. 17. The announcement alludes to the German automaker's foray into electric vehicles, brand new digital business models, and self-driving cars.

Following a price war, Didi Chuxing, that hosts a staggering 20 million rides every day in 400 Chinese cities, took over Uber's China operations earlier this year, according to a report from The Wall Street Journal.

Moreover, Volkswagen confirmed that it is planning to delve into a strategic collaboration with a car-leasing company in Beijing called Shouqi Group Co. In addition, VW is also in talks with SAIC Motor Corp. and Chinese auto partners FAW Group Corp. for a possible collaboration in the used-car sector. The ongoing talks are crucial to catapult Volkswagen as a mobility services provider.

Moreover, VW said on Thursday that it will strive to come out with a whopping 1.5 million alternative-energy vehicles (mostly electric) each year in China by 2025. The company is setting its sight on annual sales of 400,000 in the next four years i.e. by 2020, Reuters reported.

Citing changes in the auto market, automakers around the world have been looking to invest in mobility services. Car companies, on the other, are struggling to pit against the invasion on their market from Uber, Alphabet Inc.'s Google and others.

Following General Motor's (GM) $500 million investment in Lyft Inc. earlier this year, VW invested $300 million in car-hailing startup Gett back in May.

Volkswagen's biggest market is China, which accounts for over a third of VW's car sales. Amidst China's ever-growing population, new technologies and business models are coming to light in order to take care of the mobility challenge.

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