For a while, German car huge Volkswagen has viewed by itself as a formidable challenger to Tesla, in particular in the mass-market electrical motor vehicle segment. But by supply numbers, it is nowhere around threatening Tesla’s dominance in the EV place just still. To adjust that, Volkswagen has set its sights on the world’s premier auto marketplace: China.
At a press briefing in Beijing on Tuesday, to start with claimed by Reuters, Volkswagen’s China CEO Stephan Wollenstein instructed reporters that the automaker would like to double its EV sales in China for 2022 regardless of disappointing delivery figures past 12 months and uncertain semiconductor provides.
In 2021, Volkswagen offered 70,625 of its “ID.†collection electric powered cars in China. In stark contrast, Tesla offered just about as quite a few (70,847) motor vehicles in the place in just the month of December, a new record, according to details introduced by the China Passenger Auto Association (CPCA) early Tuesday.
Volkswagen Group as a full, which owns other brand names these types of as Audi, Lamborghini, Porsche and Bentley, shipped a whole of 3.3 million cars and trucks in China very last yr, down 14 p.c from 2020. The VW brand name accounted for about 2.26 million deliveries. The mum or dad group aims to raise overall China sales by 15 per cent, or roughly 50 % a million units, this 12 months, including doubling ID. revenue to about 140,000.
Like Tesla, Volkswagen has considerably of a area advantage in contrast with other overseas EV makers. Its ID. collection electrical autos are created by Volkswagen’s Chinese joint ventures with SAIC Motor and FAW Group. Similarly, all of Tesla’s vehicles offered in China were generated at its Gigafactory Shanghai, which in 2021 shipped 50 % of Tesla’s world orders.
China has come to be the fastest-expanding marketplace for electric powered motor vehicles in latest yrs, in element thanks to federal government incentives. Very last yr as a result of November, electrical cars accounted for 15 % of all passenger automobiles offered in China, according to Shanghai-based mostly consulting company Automobility. In November by yourself, a single of 5 new cars marketed in China was an electric powered auto, for each Automobility.
Volkswagen faces powerful competitors from not only Tesla, but also a roster of homegrown EV organizations. And it doesn’t seem to be to have recognized a foothold just but.
“You really do not see Volkswagen [on the road]. Players like Volkswagen, GM and Toyota have fallen much behind in China’s intelligent EV race,†Automobility CEO Monthly bill Russo informed Reuters.
The Chinese EV race is led by startups like Nio, Xpeng, and Li Auto. The three corporations sent in between 90,000 to 100,000 vehicles just about every final 12 months.
