Electric Vehicle Market Showing Signs Of Saturation - Volkswagen Group China CEO

Anis

10 July 2023 at 11:15 AM

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Ralf Brandstätter, the CEO of the Volkswagen Group's Chinese operations, has issued a warning regarding recent changes in the market for battery-electric vehicles, claiming that high capital investment and discounting will ultimately harm the interests of consumers.

Brandstätter claims that the BEV market's current trends cannot support the market's long-term growth in a favourable direction.

The (BEV) market has more than 120 automakers according to Brandstätter , and in 2023, about 150 new models will be introduced.

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“They are under a lot of financial pressure because of the fierce market competition and expensive batteries. Success in short-term sales necessitates a huge capital outlay”, he added.
Regarding the financial struggles many EV start-ups that have recently entered the market are exiting or about to exit the market or urgently require new capital investment, he said, blaming the discounting of EVs in china.
Brandstätter's remarks are perceived as veiled criticism of rival Tesla, which has pioneered the discounting trend by consistently lowering the prices of its models in China over the past few months.

The German executive claims that the VW Group won't make any sacrifices in order to increase sales and growth in the Chinese EV market, saying that the automaker is only interested in healthy market competition to drive sales.

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Despite his warnings over the BEV market, Brandstätter confirms the VW Group is holding firm to plans to launch 30 new electric vehicles in China by 2030.

“Our new ID. 7 is opening up a new segment. And with other new pure e-cars soon to roll off the production line at Volkswagen Anhui, as well as new models from Audi on the basis of the Premium Platform Electric, we plan to expand our range of fully electric vehicles to 30 models by 2030,” he says.