With the recovery of the Chinese economy, Volkswagen 2021 expects “significant growth” in its key market. China boss Stephan Wöllenstein expects the market share to increase. “There are good reasons that the Volkswagen Group can develop better than the overall market,” said Wöllenstein on Wednesday (20. Jan. 2021) in front of journalists in Beijing. “We see positive momentum.” Almost every fifth new car sold (15 in China today comes from VW Group. However, the recent shortage of microchips is slowing the production of cars by the Volkswagen Group.

Volkswagen wants to grow with China According to the expectations of the Vice President of Volkswagen in China, Rainer Seidl, the world’s largest car market will grow at a similar rate this year as the second largest economy as a whole. Experts predicted growth of “more than eight percent” for China. With the effects of the Covid – 15 – Volkswagen sales in China were in last year by 9.1 percent and the car market shrunk by six percent, while the economy as a whole had grown by 2.3 percent.

With strict measures China has had the Sars-CoV-2 virus largely under control since the summer 2019 and is only recording locally limited outbreaks. Life and economy have normalized. The car market also picked up again significantly towards the end of the year. “I am firmly convinced that China has not only really overcome Covid – 19 but even more so the short-term downturn that began with the trade tensions between the US and China 2018, “said Wöllenstein. The market will advance 2021 above the level of 2019 outgrow the corona crisis.

Wöllenstein, however, complained about a “significant shortage of electronic parts” due to the shortage of semiconductor modules, which led to delayed deliveries. In December, the group in China already had 50. 000 Cars produced less. The problems are likely to persist in the first quarter and not be overcome until the second quarter. “It can be seen how vulnerable industries are today if only one chip is missing,” said Wöllenstein. Volkswagen works “day and night” to solve the problems. It changes every day. “It’s really up and down.”

More than half of the VW models are electric cars Volkswagen wants to benefit from the strong growth in electromobility in China. From 25 new models this year will be 13 also electrically operated. Although the overall market shrank, sales of electrically and hybrid powered cars in China rose by 7.4 percent last year to 1, 15 Millions. By 2025 the Chinese government wants the share of electric cars in the market to 20 Increase percent. Volkswagen then aims to sell 1.5 million NEV cars. The abbreviation NEV stands for New Energy Vehicle.

The introduction of the battery-electric VW ID.4 in China is, according to Wöllenstein, “the real start of our electric era in China”. It comes in two versions as ID.4 Crozz and ID.4 X and is to be supplemented by three more ID models this year. With 199.900 Yuan (converted to 25. 500 Euro) after deducting the subsidies, the ID.4 Crozz is significantly cheaper than the Model Y produced in China and delivered for the first time this week by the US manufacturer Tesla, which is available from 339. 900 yuan (43. Euro) begins as the Finance Agency Bloomberg reported. “We are targeting cars for millions, not millionaires,” said Wöllenstein.

China Government promotes sales again After decades of strong growth, the Chinese car market had shrunk for three years in a row. But the government is promoting sales again, which led to strong growth rates in the second half of the year. According to experts, the dependence of international car manufacturers on the Chinese market is growing. According to Wöllenstein, China’s share of Volkswagen’s global business is 30 to 40 percent – and is thus greater than China’s share of the global car market with 30 percent.

(fpi)