BEIJING, Jan 11 (Reuters) – Volkswagen AG stated it will doubtless double gross sales of its ID battery electrical automobiles in China this yr and goals to do even higher however the automaker could possibly be hamstrung by a scarcity of semiconductors.
The ID sequence, which Volkswagen produces at its Chinese language joint ventures with SAIC Motor and FAW Group, is the spine of its EV ambitions in China, the world’s largest auto market.
The German automaker offered 70,625 of its ID electrical automobiles in China final yr, lacking its aim of promoting 80,000 to 100,000 vehicles, with manufacturing additionally affected by regional COVID-19 outbreaks along with chip-related points.
Volkswagen’s China chief Stephan Wollenstein informed a briefing in Beijing that the automaker would nonetheless wish to double its authentic plan however that aim “shouldn’t be at present secured by the semiconductor provides that we at present see.”
He added, nonetheless that he was “fairly optimistic that we are going to see a doubling of precise gross sales.”
Volkswagen Group, which alongside its personal model owns different marques similar to Audi, Lamborghini and Porsche, offered 3.3 million vehicles in China final yr, down 14%, Wollenstein stated.
The corporate goals to spice up that quantity by round 15% or roughly 500,000 models this yr, although he stated this additionally trusted the chip provide state of affairs.
The scarcity of chips, utilized in every little thing from brake sensors to energy steering to leisure programs, has led automakers all over the world to chop or droop manufacturing, pushing up each new and used car costs amid strong demand from shoppers.
Whereas China’s EV market is seeing very robust development, most overseas automakers have lagged their Chinese language counterparts in designing sensible vehicles that attraction.
The market is now dominated by Chinese language manufacturers, led by BYD and Wuling – a part of the GM group however a neighborhood marque. Whereas Tesla ranks as No.3, it’s the solely overseas model among the many high 10.
“You don’t see Volkswagen. Gamers like Volkswagen, GM and Toyota have fallen far behind in China’s sensible EV race,” stated Invoice Russo, head of consultancy Automobility in Shanghai.
Some 15% of all passenger vehicles bought in China final yr by way of November have been both battery electrical vehicles or plug-in electrical hybrids, in line with Russo. In November alone, electrical automobile gross sales accounted for 21% of China’s general passenger automobile gross sales.
Reporting by Norihiko Shirouzu; Writing by Brenda Goh; Modifying by Edwina Gibbs