The German auto giant Volkswagen has faced a significant decline in sales volumes in China, registering the lowest figures since 2010. According to the South China Morning Post, the company’s sales have decreased by 26%.
Statistical Picture
According to the company’s official statement, from January to June, a total of 971,000 vehicles were delivered to customers in China within the framework of three projects with Chinese partners. This is a decrease of 26.1% compared to the same period last year.
Marco Schubert, a member of Volkswagen’s executive committee for sales and marketing, assessed the situation as complex: “The situation in China remains complicated, and we could not avoid the overall market decline, which has amounted to around 20%.”
Competition and Electrification Challenges
The drop in sales indicates that international automakers, including Volkswagen, are struggling to compete with local Chinese companies. One of the main reasons is the slow pace of transition to electric vehicles, while Chinese consumers' interest has shifted from gasoline engines to electric vehicles (EVs) and hybrids.
According to analysts, in the first half of the year, the supply of electric and hybrid vehicles in China increased by 14%, reaching 4.7 million units. This already accounts for 54% of the total vehicles sold in the country.
Strategic Restructuring
Volkswagen, which has dominated the Chinese auto market since the establishment of its Shanghai joint venture in 1984, is now forced to accelerate its strategy. The company aims to rectify the situation by introducing more than 20 new electric vehicle models to Chinese consumers this year.
