In accordance with Volkswagen CEO Oliver Blume, European producers have a bonus over Chinese language EV makers. VW chief stated that the Chinese language provide their autos “at twice the value they pay in China” of that in Europe.
VW is just not threatened by Chinese language EV makers, CEO says
Though Blume did acknowledge that “The Chinese language have discovered construct vehicles over the previous couple of a long time” on the IAA Mobility present in Munich, he believes VW nonetheless holds an edge.
“Now we have the car know-how, now we have the extent of high quality. And now we have a model legacy. The newcomers don’t have that. So we see ourselves as nicely positioned,” Blume acknowledged, based on German newspaper Automobilwoche.
Regardless of the share of EVs shipped to Germany from China greater than tripling (28.2% vs. 7.8% final yr) within the first quarter of the yr, Blume is standing by his phrase.
The VW Group and Porsche CEO stated Chinese language EV makers can construct vehicles for round 20% much less in China. Nonetheless, they may “not be capable to provide the extent of prices they provide in China in Europe,” he defined.
As a result of excessive prices related to adapting autos to European necessities and establishing a gross sales community, “We are able to see in the marketplace that the Chinese language provide their autos to us at twice the value they pay in China.”
Competitors continues to be heating up
Blume admitted the brand new competitors was nonetheless dialing up the warmth within the auto business. “Competitors is at all times factor. It forces us to change into higher.”
Volkswagen might want to place itself higher to keep up competitiveness. “We should work onerous on the price aspect,” Blume defined.
One of many largest areas of focus is the battery, which is the first value of an EV. With its new unified cell, Volkswagen goals to cut back prices by 50%, enabling cheaper EVs.
In March, Volkswagen teased its inexpensive ID 2all electrical car idea, beginning underneath $27,000 (€25,000) with as much as 279 miles vary (450 km).
Blume additionally sees having ICE autos in its lineup as its transition to electrical as a bonus over all-EV manufacturers like NIO and BYD. He expects ICE gross sales to finance VW’s transition, whereas all-EV manufacturers want to seek out different funding sources.
Electrek’s Take
The feedback from Blume are fascinating, given Volkswagen is outsourcing know-how in China. VW revealed a $700 million funding in Chinese language EV maker XPeng for an almost 5% stake in July.
Moreover, Audi and Chinese language state-owned automaker SAIC Motor are collaborating to develop new electrical fashions within the area. Outdoors of China, VW positioned a large-scale order with Hyundai’s provider, Hyundai Mobis, for Battery Programs Assemblies.
Blume is talking in regards to the European market, however these are daring feedback for an organization already outsourcing tech within the area.
A number of new Chinese language EV manufacturers are increasing their presence in Europe, together with BYD, NIO, and XPeng, to call a couple of.
BYD introduced a number of EVs out on the IAA Mobility present in Munich, together with the Han, SEAL, DOLPHIN, and upcoming SEAL U (D-segment SUV), arriving within the first half of subsequent yr. It can begin at 42,990 euros ($46,100) in Germany.
In the meantime, Volkswagen’s ID.5 is priced at 47,595 euros ($51,050), whereas the brand new flagship ID.7 will probably be within the mid-50,000 euro ($53,600) vary.
BYD offered 2,492 autos in Europe by July, up from 1,170 final yr. The Atto 3 accounted for 1,977 of these, based on data from Dataforce (by way of Automotive Information Europe).
Michael Shu, managing director of BYD Europe, stated,
Now we have made important progress in coming into new markets in Europe. Simply twelve months in the past, we launched our model to Europe and in lower than a yr, we created a presence for our model in 15 European international locations and opened over 140 shops. We’re working along with the perfect seller companions to create a community that delivers premium buyer companies and retail experiences.
We’ll see how the story performs out over the following few months.
