The German group is trying to consolidate its positions on the world's largest market. It faces competition from Tesla and Chinese manufacturers.
Volkswagen's overall market share in China fell to 14% last year, from 18% in 2018. VW has joined forces with the Chinese XPeng, in which it has taken a 9% stake, and plans to launch new electric models with it. The German has been overtaken in the market for “new energy vehicles”, 100% electric and plug-in hybrid cars, which are growing very strongly, which have made BYD successful. The group has been present in the country for forty years through joint ventures with local manufacturers. It is now trying to design and produce “in China for China” Particularly through partnerships. The company has changed its strategy and aims to achieve a long-term double-digit market share. It will invest 2.5 billion euros to expand its activities in Hefei, the capital of Anhui province in the east of the country.