Volkswagen is not afraid of Chinese competition in Europe
Volkswagen sees itself prepared for the increasing competition from Chinese manufacturers in Europe. “We are Europe’s leading supplier of electric vehicles. This is a good basis for us and an incentive to keep going,” said CEO Oliver Blume on Monday to journalists in the run-up to the IAA Mobility in Munich. At the fair, several Chinese manufacturers are showing electric cars with which they want to take customers from German car manufacturers. Experts reckon that companies like BYD, Xpeng or Dongfeng could soon become serious competitors of BMW, Mercedes-Benz and Volkswagen.
German manufacturers are currently being held back by rising costs and the weakening economy. The Chinese, on the other hand, benefit from cheap production in their home country and have set up their own battery production, an important competitive advantage. BYD in particular benefits from the fact that it also produces innovative batteries in addition to cars. The group from Shenzhen has just ousted VW in China as the market leader in the overall market and is targeting Tesla worldwide.
When asked if he was worried about the competition, Blume said: “Fear is the wrong advice because then I start to flutter and have no chance of winning from the start.” Volkswagen remembers its strengths and will counteract confidently – “but also with a clear, realistic analysis,” added the manager.
“I think we have huge chances. We have a lot of experience, we know how to build cars,” emphasized Blume. However, the Wolfsburg-based car company will “have to work hard on the cost side”. It is also a relief that the Chinese cannot offer their vehicles at the same prices in Europe like at home. That starts with customs duties, goes through logistics costs and extends to the development of a dealer network. “We are currently noticing in the market that the Chinese are offering around twice the price as they are offering in China.”