Volkswagen, the world’s largest automaker by sales, is losing ground in China, the world’s largest auto market, as the country shifts rapidly to electric vehiclesVolkswagen is on track for its smallest year of China sales since 2012, according to CNBC analysis of public data for the first three quarters of the year. The German auto giant has failed to gain much traction in the electric car space, despite launching several models under its ID brand. Meanwhile, Tesla and local Chinese EV brands like BYD have captured a large share of the market, thanks to their more advanced technology, lower prices, and better customer service.
China is leading the global transition to electric vehicles, with new energy vehicles accounting for more than one-third of new passenger cars sold in the country so far this year. The Chinese government has set ambitious targets to achieve carbon neutrality by 2060 and has supported the development of the EV industry with subsidies, regulations, and infrastructure. Volkswagen has struggled to adapt to the changing market conditions and consumer preferences in China, where it has been operating for more than three decades and has built a strong reputation for quality and reliability.
Volkswagen cuts EV production and jobs in Germany
Volkswagen’s woes in China have also affected its EV production and employment in Germany, where the company is undergoing a radical transformation to become a leader in electric mobilityVolkswagen has cut EV production at two German plants and laid off hundreds of temporary workers, citing slow demand and reduced subsidies in Europe. The company has also faced delays and technical issues with its ID.3 and ID.4 models, which have received mixed reviews from customers and critics.
