Volkswagen may reduce its commitment to China – Industry and Analysis

Volkswagen may soon go through one of the ‘pillars’ of its strategy, namely its industrial and commercial presence in China. This is because its position among the best products in that important market cannot be maintained in the face of strong competition from local producers.
The CEO of the Oliver Blume Group himself expected this during an interview given to the German newspaper Frankfurter Allgemeine Zeitung (Faz).
“The company must give up its dreams of remaining among the best-selling brands in the country – he said – where many national car manufacturers enjoy government support and subsidies that allow them to lower prices.”
Blume explained in the Faz interview that Volkswagen “currently cannot continue to be at the top of the rankings” in the Chinese market, but that its position could improve with the prospect of new models in a wider range in the coming years.
“To be able to maintain a double-digit share in the fast-growing Chinese market for a long time – he said – is already a respectable goal”.
Compared to a peak of 18% in 2018, Volkswagen’s share in China has fallen to just 14% in 2023, due to the proliferation of cheap Chinese brands.
With a realistic expectation of a market share of more than 10%, it remains to be seen how the shareholders of the Wolfsburg company – at the next general meeting – will evaluate this reduction in sales revenue.

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