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China boss Stephan Wllenstein expects the market share to increase. “ The re are good reasons that the Volkswagen Group can develop better than the overall market,” Wllenstein told journalists in Beijing on Wednesday. “We see positive momentum.” Almost every fifth car (19.3 percent) sold in China today comes from the VW group. However, the recent shortage of microchips is slowing production.
According to the expectations of the Vice President of China, Rainer Seidl, the world’s largest automobile market will grow at a similar rate this year as the second largest economy as a whole. Experts predicted growth of “more than eight percent” for China. With the effects of the corona pandemic, the Volkswagen Group’s sales in China fell by 9.1 percent last year and the car market as a whole by six percent, while the overall economy grew by 2.3 percent.
With strict measures, China has largely got the Sars-CoV-2 virus under control since the summer and is now only recording locally limited outbreaks. Life and economic activity have returned to normal.
The car market also picked up again significantly towards the end of the year. “I am firmly convinced that China has not only really overcome Covid-19, but even more so the short-term downturn that began with the trade tensions between the US and China in 2018,” said Wllenstein. In 2021, the market will grow beyond the level of 2019 before the Corona crisis.
Wllenstein, however, complained about a “significant shortage of electronic parts” due to the shortage of semiconductor modules, which led to delayed deliveries. As a result, the group had already produced 50,000 fewer cars in China in December.
The problems are likely to persist in the first quarter and not be overcome until the second quarter. “You can see how vulnerable industries are today if just one chip is missing,” said Wllenstein. Volkswagen works “day and night” to solve the problems. It changes every day. “It’s really an up and down.”
The Volkswagen Group also wants to benefit from the strong growth in electromobility in China. Of the 25 new models this year, 13 are also operated electrically. Although the overall market shrank, sales of electrically and hybrid-powered cars (NEV) rose by 7.4 percent to 1.15 million in China last year. China’s government plans to increase the share of electric cars in the market to 20 percent by 2025.
The abbreviation NEV stands for New Energy Vehicle.
According to Wllenstein, the introduction of the fully electric Volkswagen ID.4 urban off-road vehicle in China is “the real start of our electric era in China”. It comes in two versions as ID.4 Crozz and ID.4 X and this year three more ID models are to be added. At 199,900 yuan (the equivalent of 25,500 euros) after deducting the subsidies, the ID.4 Crozz is significantly cheaper than the Model Y from the US manufacturer Tesla, which was produced in China and shipped for the first time this week, which costs 339,900 yuan (43,000 euros). begins, as the financial agency Bloomberg reported. “We’re targeting cars for millions, not millionaires,” said Wllenstein.
After decades of strong growth, the Chinese auto market had shrunk for three years in a row. But the government is encouraging sales again, which led to strong growth rates in the second half of the year. According to experts, the dependence of international car manufacturers on the Chinese market is growing. According to Wllenstein, China’s share of Volkswagen’s global business is 30 to 40 percent – which is greater than China’s share of the global automobile market of 30 percent.
This is how the VW share reacts
The y were among the favorites in the DAX.
The automaker expects “substantial growth” in its key market this year as the Chinese economy recovers. China boss Stephan Wllenstein also expects an increasing market share. Problems are caused by the lack of microchips, which is already slowing production today.
The expansion of the market share in China and the claim to leadership in the field of electric vehicles bode well for 2021.
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