Ralf Brandstätter, patron of Volkswagen in China, estime que « China is two to three years ahead in setting up a complete ecosystem around the electric car ».
Europe is two to three years behind China
China takes revenge. Long left behind by the major European, American, Japanese and South Korean manufacturers in the thermal era, the Middle Kingdom intends to catch up with electric vehicles. And it already is. About 120 Chinese manufacturers specializing in electrified vehicles are competing for the market and some are already playing in the big leagues, for example BYD, which has just sold 274,386 electrified vehicles in August 2023.
Volkswagen is considering a new brand for its electrics in China
In a recent interview with theAFP and relayed by our colleagues from Stuttgarter Zeitungon the sidelines of the IAA Munich 2023, the boss of Volkswagen in China Ralf Brandstätter believes that Europe must act ” so as not to miss the mark “. According to him, the Old contains has already been made ” far ahead while the United States provided a solid response with theInflation Reduction Act (IRA). A text whose objective is to protect the national interests of the country. Joe Biden seeks in particular to encourage automakers around the world to produce electric vehicles on American soil.
The Middle Kingdom takes its revenge on the electric
The head of Volkswagen believes that in Europe there is a lack of a holistic approach which would consist in “ develop research, secure raw materials and reindustrialize territories “. China has succeeded in putting such a strategy in place to develop an entire ecosystem around electric cars. On the Chinese market, Ralf Brandstätter is in charge of restoring the ” disappointing performance of the German brand in the electric segment ».
Why is the Volkswagen group absolutely looking to invest in the Chinese Xpeng?
To achieve this, Volkswagen recently decided to cut the price of its ID.3 by displaying it at 16,000 euros. And it hits! The brand sold nearly 10,000 units of its electric model in August 2023, compared to just 1,819 in June. But there is a problem: at this price, Volkswagen is selling at a loss. Unlike European manufacturers, China has been building for several years “ a true ecosystem for electric motorization ».
The European manufacturer intends to improve its strategy ” in China for China “. Volkswagen has notably strengthened its partnerships with Xpeng and SAIC. Collaborations with local players to develop new platforms and electric vehicles specifically designed for Chinese users. By localizing the production and design of its electrified models, the brand intends to shorten the introduction time of its new products on the Chinese market by 30%.