Volkswagen's Electric Vehicle Sales in China Last Year Reach 70,000 Units, Falling Short of Target

Due to Semiconductor Supply Shortages and Intensified Competition with Chinese Cars

[Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 11th (local time) that Volkswagen's electric vehicle sales in the Chinese market last year fell short of the target by 10,000 units. This was due to supply disruptions caused by semiconductor shortages and intensified competition with Chinese companies.

Volkswagen sold 70,000 electric vehicles in the Chinese market last year. The sales target was between 80,000 and 100,000 units.

The total vehicle sales of the Volkswagen Group, including Audi and Porsche, in China last year were 3.3 million units, a 14% decrease compared to 2020.

Stefan Wollenstein, Volkswagen Group China representative, said, "2021 was one of the toughest years in the Chinese market," adding, "There were sufficient orders, but we could not produce according to demand due to semiconductor shortages." He also noted, "Factory shutdowns caused by COVID-19 worsened the situation."

Although sales declined, Volkswagen was still confirmed as the top-selling vehicle brand in China. Profit margins were also the highest in the Chinese market. However, as competition with Chinese companies intensified, profit margins in the Chinese market have sharply declined over the past few years.

Volkswagen plans to set up showrooms and actively promote the electric vehicle ID brand, judging that Chinese consumers show more interest in newly emerging electric vehicle brands than existing ones. This year, they also plan to expand online sales with a goal of selling at least 140,000 ID models.

However, Wollenstein added that due to the semiconductor supply shortage, the 140,000 sales target cannot be guaranteed. He said, "It is still difficult to predict the semiconductor supply situation in the first half of the year," but added, "However, overall this year, semiconductor production is expected to stabilize and recover."

Although the Volkswagen Group's total sales in China decreased last year, sales of luxury brands increased. Porsche, Bentley, and Lamborghini's sales in China last year rose by 7.5%, 40%, and 55%, respectively.

Porsche's electric vehicle brand Taycan sold 7,000 units, significantly surpassing Porsche's 911 brand sales of 4,000 units.

This content was produced with the assistance of AI translation services.