Volkswagen AG expects sales in China to return to the previous levels in the second half of the year, with premium brands such as Audi and Porsche leading the recovery from the current virus. VW China chief Stephan Wollenstein told a media conference in Beijing yesterday that the carmaker sold around one point five, nine million vehicles in the first half of the year, down from a million in 2015 and a million in 2016. Total sales in the industry had fallen by 22 percent in the first half of the year, while the rise of the new generation of Audi A3 and Audi Q5 and the Volkswagen Group’s new Audi R8 had helped to increase its share. We expect the second half to be close to the level of last year and the third half to be similar to the first half of the year.
The Volkswagen Group’s extensive production network in China will resume production in the second half of the year, even if the infection continues to spread to other regions. And the Chinese Automobile Manufacturers Association predicts that demand will pick up in the second half of the year, with demand likely to hit a low point early this year. VW said in a statement yesterday that global deliveries in the initial half of the year slumped 27% to three point right, nine million cars, trucks and motorcycles. Porsche managed to limit its sales decline to 12% in the first six months, but Porsche’s flagship sports car, the Porsche 911 GT3 RS, suffered a decline of more than 20%.
German manufacturers are optimistic about demand for electric vehicles in China, although sales have declined since the government cut subsidies last year, Wollenstein said. Others, like Tesla Incorporation, have performed better than the rest of the industry, though many electric car startups have stopped operating. Total electric vehicle trades in China are expected to be about 1, 000, 000 units this year, similar to 2019, Wollenstein said. VW is sticking to its plan to sell one to one point five million electric vehicles by 2025 and boost sales and business in China, he said.
Wollenstein said VW plans to introduce two new electrical models in China later this year, the Audi A3 and the new Audi Q3. The model will be built locally, said Wollenstein, who formerly headed the company’s global electrical vehicle division. Wollenstein said VW had made no changes to its investment plans for electric vehicles, but the company’s investments in the vehicle program would not be limited to China. This leads to the summary that if we consider a strong brand and an attractive product that we can offer with the ID family very proudly. And this is the first time it has come to China, let’s consider the chance to find our way into the electrical market.
Demand for ID family pens, as consumers shun public transportation to reduce the risk of infection, helped lure customers back to the showrooms, ease easing measures and boost purchases. VW has launched new initiatives in China to boost purchases, including delivering disinfected cars to test drives at home and improving hygiene measures at dealerships. Still, the economic turmoil weighs on consumers’ willingness to invest in big things-like cars, said Thomas Hahn, chief executive.
China’s gross domestic product grew three points two percent in the initial quarter from the same quarter a year earlier. This lead to the offsetting of a lower percentage decline in the previous quarter, the National Bureau of Statistics said. Again, it happened China’s initial-quarter growth rate of three point two percent however, remains below that of the world’s second-largest economy. The success of China is also a key focus for the VW Group, Audi, AUDI and the Chinese Association of Automobile Manufacturers. A joint venture generates dividends that have helped to mitigate the financial blow caused by the virus crises. And the joint ventures also generate dividends that help mitigate the financial impact of the virus crisis and the global financial crisis on the automotive industry.
VW has further expanded its presence in China by becoming the principal major shareholder in the country’s largest car manufacturer, the Guangzhou Automobile Group. And by reaching an agreement to acquire a majority stake in China’s second-largest car manufacturer, the Zhejiang Geely Automotive Group.