Volkswagen, facing intense competition in China's electric vehicle (EV) market, is setting a target to maintain its current market share of around 15 per cent (four million cars annually) until 2030, as reported by Reuters on Wednesday. The company also aims to achieve a proportionate operating profit exceeding €2 billion by 2027 and €3 billion by 2030, building on the €2.6 billion profit earned in 2023. This strategy comes despite a fierce price war challenging the German automaker's profitability. Volkswagen, once the top-selling car brand in China, has lost ground to domestic EV giant BYD. The company's market share dropped from 19.3 per cent in 2020 to 14.5 per cent last year, reflecting declining sales of combustion-engine vehicles. Ralf Brandstaetter, head of Volkswagen's China business, acknowledges the pressure from falling prices and expects the price war to continue in the next few years. To counter this, Volkswagen is investing heavily in a new Chinese research centre and forging partnerships with domestic EV makers and suppliers to develop more affordable electric vehicles at a faster pace.
