In response to heightened competition in China’s electric vehicle (EV) sector, Volkswagen has outlined ambitious goals to sustain its current market share of approximately 15 percent (equivalent to four million cars annually) until 2030, as reported by Reuters on Wednesday.
The automotive giant is also targeting an escalating operating profit, aiming to surpass €2 billion by 2027 and reach €3 billion by 2030, building upon the €2.6 billion profit achieved in 2023.
Despite facing a challenging price war that has impacted its profitability, Volkswagen remains steadfast in its strategy. Once the leading car brand in China, the company has encountered stiff competition from domestic EV heavyweight BYD. Volkswagen’s market share declined from 19.3 percent in 2020 to 14.5 percent last year, reflecting a downturn in sales of traditional combustion-engine vehicles.
Ralf Brandstaetter, head of Volkswagen’s China business, acknowledges the pressure exerted by diminishing prices and anticipates the continuation of the price war in the coming years.
In a bid to counteract these challenges, Volkswagen is making substantial investments in a new research center in China. Additionally, the company is forging partnerships with domestic EV manufacturers and suppliers to accelerate the development of more affordable electric vehicles. These initiatives aim to bolster Volkswagen’s competitive edge and enable it to navigate the evolving landscape of China’s dynamic EV market.
