Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Volkswagen won't join China discount battle "at any price" - COO

Published 31/05/2023, 08:49
Updated 31/05/2023, 10:37
© Reuters. FILE PHOTO-CEO Volkswagen Passenger Cars Ralf Brandstaetter poses during Volkswagen ID. Life car presentation ahead of the Munich Motor Show IAA Mobility 2021 in Munich, Germany, September 6, 2021. REUTERS/Wolfgang Rattay

© Reuters. FILE PHOTO-CEO Volkswagen Passenger Cars Ralf Brandstaetter poses during Volkswagen ID. Life car presentation ahead of the Munich Motor Show IAA Mobility 2021 in Munich, Germany, September 6, 2021. REUTERS/Wolfgang Rattay

BERLIN (Reuters) -Volkswagen will not participate in a discount battle in China "at any price", Chief Operating Officer Ralf Brandstaetter said in an interview released on Wednesday.

The German carmaker is under growing pressure in its most important market from up-and-coming Chinese manufacturers who are more successful with electric cars than their Western rivals.

"Volkswagen (ETR:VOWG_p) is focusing on a sustainable business model. In concrete terms, this means that we will not participate in the discount battle at any price," Brandstaetter said in an interview for the company's intranet.

"Our market position is strong enough. For us, the focus is on profitability, not sales volume or market share," he added.

Brandstaetter expects the Chinese car market to grow from its current 22 million to between 28 to 30 million by 2030.

"If we achieve sales of more than 4 million vehicles in this environment in 2030, with corresponding profitability, that is a position we could very well live with," he said.

© Reuters. FILE PHOTO-CEO Volkswagen Passenger Cars Ralf Brandstaetter poses during Volkswagen ID. Life car presentation ahead of the Munich Motor Show IAA Mobility 2021 in Munich, Germany, September 6, 2021. REUTERS/Wolfgang Rattay

Volkswagen aspires to be the biggest international carmaker in China, he said, adding that it's irrelevant if another national manufacturer sells more than it does.

Chinese manufacturer BYD (002594.SZ) outsold Volkswagen, which has led the market there for decades, as the top passenger car brand earlier this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.