Volkswagen wants to maintain a 15 percent share in China, the ID.Code concept shows the near future

The largest European car manufacturer is betting heavily on China and is counting on large investments. With their help, he wants to boost sales of his cars, Brandstätter said. By 2030, Volkswagen wants to sell about four million cars a year in China.

The 2030 targets show the difficulties Volkswagen is facing in China, Reuters reported. Last year, Volkswagen had a share of 14.5 percent in the Chinese market, while still in 2020 its share was 19.3 percent.

“Today, prices are falling faster than the rate at which costs are improving,” said Brandstätter, who is a Volkswagen board member and head of the group’s China division. “We expect the price war to continue in the coming years, especially the next two,” Brandstätter told analysts, adding that the situation means pressure on profit generation.

Volkswagen outlined its plans in China now. A new design, innovative technologies and further developments are on the way. The goal is to reach other groups of customers, including younger ones.

The direction of the brand in the market there is indicated by the SUV concept called ID.Code. The ID family is to expand to 16 models in China by 2030, and the news will follow the minimalist design language of the concept.

Photo: Volkswagen

Volkswagen shares on the Frankfurt Stock Exchange were down around one percent in the afternoon, hovering just above 120 euros apiece. The losses deepened just after the comments of the head of the Chinese part of the concern, trading started with a moderate profit. Three years ago, one share of Volkswagen cost almost 250 euros.

Volkswagen lost its position as the best-selling car brand in China at the end of 2022, its place was taken by Chinese rival BYD. The decline in sales of cars with internal combustion engines and the rapid rise of electric cars, where Chinese brands are gaining ground, contributed to this.

Brandstätter said investing in a new research center in China and partnering with Chinese EV manufacturers and suppliers could help it develop more affordable EVs faster in the Chinese market.