Volkswagen is currently focusing on protecting its brand equity rather than competing aggressively for market share amidst an EV price war in China. Ralf Brandstätter, the VW Group China boss, highlights the challenge posed by over 130 brands in the market, making profitability difficult. In response, Volkswagen is launching an affordable EV range to boost its mid-term sales by one-third and leverage its annual production capacity of 4 million cars. Historical efforts in China position VW as a major global carmaker, despite recent struggles due to market saturation and external economic factors.
Volkswagen faces intense competition in China's EV market with 130 brands vying for sales, leading to unsustainable pricing that threatens future investments.
Ralf Brandstätter, VW Group China boss, acknowledges the ongoing price war is impactful, stating, "China's car market has lost all reason."
Volkswagen is initiating a new EV cycle to boost sales by a third in the mid-term, alongside an affordable range of EVs based on a local platform.
Despite challenges, Volkswagen remains significant in the auto industry, being the world's second-largest carmaker, largely due to its early success in the Chinese market.
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