Volkswagen still has the highest market share in China as a foreign car manufacturer. Their popular brands include VW, Skoda, Porsche, Audi and Bentley. However, despite being one of the world’s top two automakers, Volkswagen is failing to capture the attention of young consumers in China. Gadget-driven electric cars made by local rivals are slowly gaining popularity in the world’s biggest car market. News Wall Street Journal.
The German car manufacturing giant is losing market share in China. Volkswagen may have a market share of 16 percent this year, despite a slight increase in sales in recent months. Volkswagen’s car sales fell by about one-fifth compared to 2019. At that time, the German car giant had a 20 percent share, according to data from consumer research firm JATO Dynamics.
Declining market share is not only the biggest challenge facing Volkswagen’s new CEO, Oliver Blume, but there are other crises that have piled up in front of him. Rising fuel costs, ongoing supply chain crunches and disruptions in in-house software supply have created headaches in the car market.
The Chinese market has long been the duck that laid the golden eggs for Volkswagen. But recent market share contractions have raised concerns. China accounted for 37 percent of all new car sales in the world last year. Clearly, local and international car manufacturing brands are eyeing this market.
According to Bernstein Research, Tesla has become a big headache for Volkswagen in China. The company founded by Elon Musk is offering the most modern and attractive vehicles to EV consumers in China.