The German brand Volkswagen, which abandoned the factory project planned to be established in Turkey in 2020, cited the low demand due to coronavirus and political reasons as the reason for this.
Things are not going well for those who have significantly increased their investments in China in recent years.
Lost leadership after 15 years
BYD, the car manufacturer that has attracted a lot of attention recently, ended Volkswagen's 15-year leadership in the Chinese market and became China's best-selling car brand last year.
Thus, for the first time since 2008, a car manufacturer succeeded in surpassing Volkswagen.
Volkswagen sold about 3,2 million vehicles in China last year; It achieved an annual decline of 0,2 percent and a market share of 10,27 percent.
Sales continue to decline in the new year
As we enter 2024, electric car sales in China have exploded. As the Chinese mostly turned to domestic brands in electric vehicle sales, interest in Volkswagen decreased.
According to shared statistics, Volkswagen sold 2019 million cars in the Chinese market in 4,2. In 2023, this number dropped to 3.2 million.
Volkswagen's annual profits from its subsidiaries in China decreased from 4-5 billion euros to 1.5-2 billion euros.
Electric vehicle sales also decreased
Volkswagen's market share in electric vehicle sales remained very low. BYD has a 25,6 percent share in the market in China, while Tesla, in second place, has a market share of 11,7 percent.
Volkswagen's electric vehicle share in China is only 3 percent.
Investments in China are increasing
The German brand, which is looking for new ways to increase sales, continues its investments in the country.
Volkswagen (VW) Cluster reached an agreement with Xpeng in the past weeks to jointly develop a smart electric car.
It was stated in the statement that the companies established a strategic partnership for platform and software cooperation with the agreement, and that the focus was on the joint development of two mid-length Volkswagen brand vehicles, which will be first launched with an SUV.
While China has the world's largest and fastest growing electric car market, German car company Volkswagen wants to be more active in this market.
