VW steers clear of discount battle in China

Volkswagen will not participate in a discount battle in China “at any price”, COO Ralf Brandstaetter said on Wednesday.

The German carmaker is under growing pressure in its most important market from up-and-coming Chinese manufacturers that are more successful with electric cars than their Western rivals.

“Volkswagen is focusing on a sustainable business model. This means we will not participate in the discount battle at any price,” Brandstaetter said in an interview for the company’s intranet.

“Our market position is strong enough. For us, the focus is on profitability, not sales volume or market share,” he added.

Brandstaetter expects the Chinese car market to grow from 22-million now to between 28-million and 30-million by 2030.

“If we achieve sales of more than 4-million vehicles in this environment in 2030, with corresponding profitability, that is a position we could live with,” he said.

Volkswagen aspires to be the biggest international carmaker in China, he said, adding it is irrelevant if another national manufacturer sells more than it does.

Chinese manufacturer BYD outsold Volkswagen, which has led the market there for decades, as the top passenger car brand earlier this year.

Reuters