Volkswagen takes on competition in Chinese EV market
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VOLKSWAGEN is looking to expand both its higher-end and lower-end offerings in the Chinese market, said its China board chairperson Ralf Brandstaetter on Monday (Jan 16).
The German carmaker has long dominated the combustion-engine car market in China. But it lags domestic competitors, most notably BYD, on electric vehicles (EVs). Chinese brokerage CMBI said that while BYD sold 40,046 EVs from Jan 1 to Jan 8, Volkswagen’s Passenger Cars brand sold just 1,962 in the same period.
“We don’t want to give up this competition – we want to participate,” Brandstaetter said, adding that the high-paced Chinese market was a “giant fitness centre for the industry”. Asked if Volkswagen aspired to remain the top foreign carmaker in China in the electric era, he said: “We want to play a leading role... the cards are being mixed anew.”
The carmaker is aiming to reduce its time to market for new models, from four years to the 2.5-year average that its Chinese counterparts take. This will be achieved in part by further localising research and development for Chinese models.
“We give ourselves more time because of our quality standards, but we could be faster,” Brandstaetter said.
He added that Volkswagen plans on releasing the upper-end ID.7 in China, as well as a new model below the ID.4, like a smaller sedan or sport utility vehicle (SUV), though not the entry-level ID.2 planned for Europe.
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Brandstaetter attributed the fast growth of China’s EV market partly to cheaper electricity, with one charge of an ID.4 costing nearly five times less in China than in Germany.
Volkswagen needed to act “from a position of strength” in China, he said. He was referring to the ongoing debate in Germany over how to diversify its economic relationships, so that it could rely less on China.
“Diversification doesn’t mean shutting down in China and ramping up America. It means continuing to use the market opportunities in China and ramping up America.” REUTERS
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