VW in the crisis: sharp competition in China's playoff season!

VW in the crisis: sharp competition in China's playoff season!

Shanghai, China - Volkswagen faces a tightened competition at the Chinese car market, which is fueled by large tech companies. Ralf Brandstätter, the board member of Volkswagen for China, comments on and describes the current market situation as a kind of "playoff season" in which not all market participants will survive. Despite the intensive competition, Brandstätter is sure that VW is well positioned to meet the challenges. The announcement of a large product offensive to the upcoming car show in Shanghai, which begins on Wednesday, should underpin. Already on the eve of the fair, Volkswagen presented five world premieres, including an SUV as a range with an electric drive and combustion engine, a fully electric vehicle and a inexpensive compact model that should cost around 17,000 euros.

The market for electrical and hybrid vehicles in China, which quickly develops, is a significant challenge. As reported by Autpreneur.de And thus overtake the classic combustion engines at the approvals. VW has to assert itself in a market that is not only very fragmented, but is also dominated by a variety of local manufacturers that pursue agile strategies and quick reactions to customer requirements.

production and market strategy

Volkswagen will also present a self -developed automated driving system (ADAS) that includes functions such as lane keeping assistants and speed control. This system should reach up to level 2 ++ and thus offer a significant relief for the driver. This innovation could help VW to differentiate themselves from competitors who may be behind in this regard.

The continuing challenges are also evident in the company's financial figures. Last year, Volkswagen recorded a decline in profit from 31 percent to 12.4 billion euros compared to the previous year, which is due to the high renovation costs and the estras competition. The profit from the Chinese market has dropped drastically, which explains the urgency to effectively position itself in this dynamic landscape.

criticism of competitors and pricing

Stefan Mecha, the VW brand boss, criticizes the unrealistic prices of competitors in China, which in his view would have to cost twice. These price strategies could play a key role in the pricing of their products for Volkswagen, especially in a market where NEVS and electric vehicles are becoming increasingly important. China clearly recognized the trend towards both electric cars and hybrids and thus represents an important innovation engine for the industry.

summarized, Volkswagen sees himself in a rapidly changing market in which local manufacturers and new competitors increasingly gain influence. The company has to develop innovative products and strategies to secure its place in the important Chinese car market and to master the challenges of the competition. The focus remains on the development of vehicles that meet the needs of consumers and adaptation to the new reality of the automotive industry in China.