(VWAGY), BYD CO LTD H SHS (BYDDF) – Volkswagen has a huge stake in the Chinese auto market – but when it comes to electric vehicles, it still can’t compete with Tesla
Volkswagen AG (OTC: VWAGY) Deliveries of fully electric vehicles in China more than doubled to 18,285 vehicles in the first half of the year, but lagged behind the top competitor massively Tesla Inc (NASDAQ: TSLA) almost 145,181 deliveries so far this year.
What happened: Volkswagen announced that the delivery volume in China in the first half of the year represented 10.7% of the German automaker’s global electric vehicle sales and confirmed plans to deliver around one million electrified vehicles in 2021, including battery-powered and plug-in hybrid electric vehicles.
China is crucial to the success of Volkswagen as a whole. The automaker sold 1.85 million vehicles in the country in the first half of 2021, making China its largest single market, accounting for 37% of the total. According to LMC Automative, Volkswagen brands account for 18% of the Chinese auto market, reports the Wall Street Journal.
“In the third quarter, we expect the expanded Volkswagen ID. Model range, ”says Christian Dahlheim, Head of Group Sales at Volkswagen.
Worldwide deliveries of battery electric vehicles from Volkswagen also more than doubled to 170,939 vehicles in the first half of 2021, compared with 64,462 units sold in the previous year.
See also: Elon Musk says Tesla will open a supercharger network for other electric vehicles later this year
Regionally, deliveries to the USA and China were almost the same, with the former making up 10.8% of global deliveries. The majority of deliveries in the first half of the year continued to be made in Europe at 74.9%.
According to the China Passenger Car Association, Tesla delivered 28,138 electric vehicles in China in June alone.
Why it matters: China has been proactive in advancing the adoption of electric vehicles, offering subsidies and other incentives.
Volkswagen, which aims to overtake Tesla as the world’s leading electric vehicle maker by 2025, is on a tough battlefield where it will have to compete with the Elon Musk-led company and at least half a dozen domestic electric vehicle manufacturers.
Despite Tesla’s recent troubles in China, sales have not cooled. Local Chinese rivals like Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV), Li Auto Inc (NASDAQ: LI) and BYD Co (OTC: BYDDF) also all offer tough competition with their product offerings.
See also: Tesla, local rivals Nio, Xpeng, Li are growing together and not cutting each other’s market share, analysts say
Competition will only increase when old automakers General Motors Co (NYSE: GM) and Ford Motor Co (NYSE: F) to unveil new deals shortly
Price action: VW shares closed on Tuesday 1.7% higher at $ 32.35.
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Photo: Courtesy of Volkswagen
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