Volkswagen stays firm, refuses to engage in discount battle in China, says COO
Volkswagen has declared that it will not engage in a price-driven discount battle in China, regardless of the circumstances, according to Chief Operating Officer Ralf Brandstaetter. The German automaker is facing mounting pressure in its most crucial market from emerging Chinese manufacturers who have been more successful in the electric vehicle sector than their Western counterparts.
Brandstaetter emphasized Volkswagen’s commitment to a sustainable business model, stating that they will not compromise their position by entering into a discount war at any cost. Instead, the company is focusing on maintaining profitability rather than solely pursuing sales volume or market share.
Brandstaetter anticipates significant growth in the Chinese car market, projecting an increase from the current 22 million vehicles to approximately 28 to 30 million vehicles by 2030. He expressed confidence that if Volkswagen achieves sales of over 4 million vehicles in this expanding market by 2030, while maintaining profitability, it would be a satisfactory outcome for the company. He emphasized that Volkswagen’s goal is to become the leading international carmaker in China, regardless of whether another domestic manufacturer surpasses its sales.
Earlier this year, Chinese automaker BYD outsold Volkswagen as the top passenger car brand in China, dethroning Volkswagen, which had held that position for decades. Despite this setback, Volkswagen remains resolute in its strategic approach, focusing on sustainable growth and profitability in the competitive Chinese market.