Volkswagen's Sales Predicament: China Faces Particular Challenges
The Volkswagen Group is currently facing tough times. Their vehicle sales have significantly decreased compared to last year, with the China market being the hardest hit. In the third quarter alone, Volkswagen sold 15% fewer vehicles in China than they did in the previous year. Globally, the company, which includes brands like Volkswagen, Audi, and Porsche, shipped 6.52 million vehicles by the end of September, a 2.8% decline from the previous year. The decline was more prominent in the third quarter, with a 7.1% drop.
Volkswagen's sales chief, Marco Schubert, acknowledged the challenging market conditions. He pointed out that the intense competition in China is the main reason behind the global decline in their vehicle deliveries. In China, the number of cars sold in the third quarter was 15% less than in the previous year.
A spokesperson noted that the Chinese car market is still plagued by high discounts. Competitors are launching new models at affordable prices, putting pressure on Volkswagen. The spokesperson emphasized that Volkswagen has always prioritized profitability. In recent months, they have focused on reducing costs for electric vehicles, improving their competitiveness.
However, the situation was better in North and South America, where sales increased by 7% and 15% respectively. Sales decreased by 1% in Western Europe, and 1.6% fewer cars were sold in Germany.
The business with electric vehicles also took a hit. Sales declined by 4.7% to about 500,000 vehicles, with the share of electric vehicles in total sales remaining around 8%. Despite the decline, the company reported that orders for electric vehicles in Western Europe doubled by the end of September. For the final quarter, Volkswagen expects a boost from new models such as the VW ID.7 Tourer, the Audi Q6 e-tron, and the electric Porsche Macan.
The challenging economic conditions, particularly in the Chinese market, are negatively impacting The economy, causing a significant decrease in vehicle sales for the Volkswagen Group. Despite facing intense competition and high discounts in China, Volkswagen remains committed to prioritizing profitability and reducing costs for electric vehicles.
