Volkswagen Wants to Sell More Electric Cars in China

Volkswagen, as well as its rivals, understand the importance of electric cars. It aims to double sales of its ID battery electric vehicles in China this year and aims to do even better, but A shortage of semiconductors could hamstring Volkswagen.

The ID series, which Volkswagen produces at its Chinese joint ventures with SAIC Motor and FAW Group, represents the backbone of Volkswagen’s EV ambitions in the world’s largest auto market. 

In 2021, Volkswagen sold 70,625 of its electric vehicles in China, missing its target of selling 80,000 to 100,000 cars. Problems created by Covid-19 and chip-related issues affected its plans. 

Volkswagen’s Chief in China discussed the company’s plans. Stephan Wollenstein stated that the company would still like to double its original plan. 

Volkswagen and China

Last year, Volkswagen Group, which owns marques such as Audi, Porsche, and Lamborgini, sold 3.3 million cars in the country. 

The company wants to boost that number by around 15% or roughly 500,000 units this year. 

One problem has the potential to derail Volkswagen’s plans. Unfortunately, the shortage of chips forced companies to reduce or suspend production, pushing up both new as well as used vehicle prices amid robust demand from consumers.

It has to compete with numerous carmakers in China. Currently, local companies dominate the market. The world’s largest auto market is dominated by BYD and Wuling – part of the GM but a local marque. Currently, Tesla ranks as No.3, it is the only foreign brand among the top 10.  

Companies are working hard to sell as many electric cars as possible. It is not hard to understand them, as people in China like electric cars. In November of 2021, electric car sales accounted for 21% of China’s overall passenger car sales. 

Interested in Forex Trading? Read WiBestBroker’s comprehensive review on VHNX.