Volkswagen bought 10,000 fewer electrical automobiles in China than anticipated final 12 months, as deliveries to clients in its greatest market have been hit by semiconductor shortages amid fierce competitors from home manufacturers.
The German marque bought 70,000 of its 5 flagship ID fashions, most of which have been launched in the course of the previous 12 months, having focused gross sales of between 80,000 to 100,000 automobiles for 2021.
As a complete the VW group, which incorporates Audi and Porsche, delivered 3.3m automobiles in China final 12 months, 14 per cent fewer than in 2020.
“2021 has been one of the difficult years in our historical past in China,” mentioned Stephan Wöllenstein, the group’s longstanding boss within the nation, who is because of step apart later this 12 months.
“While our order books are nicely crammed, we have been unable to match manufacturing to demand over an absence of semiconductors, with the scenario additional intensified by manufacturing unit shutdowns — each on our aspect and provider aspect — on account of Covid-19 circumstances.”
Volkswagen’s two joint ventures in China, with FAW and SAIC, have been the engine of the group’s development for many years, and the nation stays VW’s single largest and most worthwhile market.
Nonetheless, earnings in China have been declining drastically over the previous few years, because the carmaker’s mass market choices face competitors from youthful home manufacturers corresponding to BYD and Nice Wall Motors.
VW’s 5 new ID fashions haven’t bought in addition to hoped, and firm executives informed the Monetary Instances that Chinese language consumers have been gravitating in the direction of brisker electrical manufacturers, not related to conventional carmakers.
In consequence, VW is organising showrooms that emphasise the ID model, and increasing its on-line gross sales providing within the hope of promoting a minimum of 140,000 ID fashions this 12 months.
Nonetheless, Wöllenstein informed journalists in a briefing on Tuesday that the quantity focused “just isn’t at present secured by the semiconductor provides that we at present see”, though he stays assured of hitting it.
He added: “Wanting forward for this 12 months, the chip provide scenario will stay unstable for the primary half. Nonetheless, we count on a progressive restoration, with manufacturing stabilising over the course of the 12 months.”
Whereas VW’s electrical gross sales have slumped, luxurious manufacturers Porsche, Bentley and Lamborghini set new annual information in 2021, with annual development of seven.5 per cent, 40 per cent and 55 per cent respectively.
Porsche’s electrical Taycan mannequin outsold its fashionable 911 mannequin, with greater than 7,000 models delivered, in contrast with 4,000 of the 911.