Carmaker is confident of doubling sales of its ID electric vehicles
11 January 2022 - 09:56 Agency Staff
Picture: BLOOMBERG
Volkswagen is betting demand for electric vehicles (EVs) and easing supply constraints will help it return to growth in China this year, after the global chip shortage dented sales in 2021.
Deliveries fell to 3.3-million vehicles last year, down 14% from 2020 when the first wave of coronavirus swept through the country, China CEO Stephan Wollenstein told reporters in Beijing on Tuesday. That missed the group’s internal target, he said.
The VW brand accounted for about 2.26-million deliveries, or about 11% of the national vehicle market. That compares to a previous share of 14%-15%, which Wollenstein described as a “substantial loss”.
The German carmaker’s underperformance in one of its key markets illustrates how global carmakers have been hit by the semiconductor shortage that started in late 2020, as well as coronavirus outbreaks that have prompted swift lockdowns as China adheres to a strict Covid-zero policy.
“If you talk to our logistic and production colleagues, it’s probably the hardest time in their business life,” said Wollenstein. “We have to adjust our production programmes more or less weekly, depending on what we are getting as supplies on a global basis, and what difficulties we have to deal with on a local basis.”
Recent outbreaks in the cities of Ningbo and Tianjin have caused shutdowns at Volkswagen’s joint-venture plant and key suppliers, which affected production of the ID series of electric cars. The company has delivered 70,625 IDs since its launch in March, missing the original target of 80,000 to 100,000.
For 2022, the group is targeting a return to 2020 levels, which would add 500,000 to 600,000 units to sales, Wollenstein said. The company is confident of doubling sales of the ID series, to about 140,000, he said. In comparison, local EV makers Nio, Xpeng and Li Auto delivered 90,000 to 100,000 vehicles last year.
Wollenstein will step down by the end of August after serving more than 10 years in China. He will be replaced by Volkswagen Brand CEO Ralf Brandstaetter, the company said last month.
More stories like this are available on bloomberg.com Bloomberg
VW bets on EVs for return to growth in China
Carmaker is confident of doubling sales of its ID electric vehicles
Volkswagen is betting demand for electric vehicles (EVs) and easing supply constraints will help it return to growth in China this year, after the global chip shortage dented sales in 2021.
Deliveries fell to 3.3-million vehicles last year, down 14% from 2020 when the first wave of coronavirus swept through the country, China CEO Stephan Wollenstein told reporters in Beijing on Tuesday. That missed the group’s internal target, he said.
The VW brand accounted for about 2.26-million deliveries, or about 11% of the national vehicle market. That compares to a previous share of 14%-15%, which Wollenstein described as a “substantial loss”.
The German carmaker’s underperformance in one of its key markets illustrates how global carmakers have been hit by the semiconductor shortage that started in late 2020, as well as coronavirus outbreaks that have prompted swift lockdowns as China adheres to a strict Covid-zero policy.
“If you talk to our logistic and production colleagues, it’s probably the hardest time in their business life,” said Wollenstein. “We have to adjust our production programmes more or less weekly, depending on what we are getting as supplies on a global basis, and what difficulties we have to deal with on a local basis.”
Recent outbreaks in the cities of Ningbo and Tianjin have caused shutdowns at Volkswagen’s joint-venture plant and key suppliers, which affected production of the ID series of electric cars. The company has delivered 70,625 IDs since its launch in March, missing the original target of 80,000 to 100,000.
For 2022, the group is targeting a return to 2020 levels, which would add 500,000 to 600,000 units to sales, Wollenstein said. The company is confident of doubling sales of the ID series, to about 140,000, he said. In comparison, local EV makers Nio, Xpeng and Li Auto delivered 90,000 to 100,000 vehicles last year.
Wollenstein will step down by the end of August after serving more than 10 years in China. He will be replaced by Volkswagen Brand CEO Ralf Brandstaetter, the company said last month.
More stories like this are available on bloomberg.com
Bloomberg
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Related Articles
Short seller Viceroy bets that Tesla is overvalued
Toyota to invest $35bn to accelerate its electric vehicle push
VW to spend billions to set up a dedicated battery unit
VW to discuss CEO Herbert Diess’s future on Tuesday
Rivian surpasses VW’s valuation as EV mania rages
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.