Volkswagen Group China CEO Ralf Brandstaetter has expressed concerns about the electric car market, warning that it is showing signs of “overheating.” Speaking at the 2023 China Automobile Forum in Shanghai, Brandstaetter highlighted the high capital investment and intense competition in the sector as potential threats to the interests of consumers.
Around 150 new Electric Vehicles will be Launched this year which may saturate the market
Brandstaetter drew attention to the increasing number of players in the market, with over 120 car makers currently operating in the electric vehicle (EV) segment. He also noted that approximately 150 new EV models are expected to be launched in 2023 alone. Such intense competition, coupled with high battery prices, creates significant economic pressures and necessitates substantial capital investment for short-term sales success.
The CEO pointed out that many EV startups are struggling financially, leading some to exit the market or seek new capital investment urgently. In light of these challenges, Brandstaetter emphasized the need for consolidation within the industry.
Brandstaetter specifically criticized the discounting strategies employed by EV manufacturers in China, citing potential harm to consumer interests. He cautioned against deep price cuts and highlighted the potential consequences, such as reduced support and services for retired brands or diminished resale value for consumers.
In contrast to some competitors, Brandstaetter asserted that Volkswagen Group would prioritize profitability over pursuing sales and growth at any cost. He vowed that the company would not engage in unhealthy market competition, taking a subtle dig at Tesla, which has resorted to frequent price reductions to drive sales.
Despite acknowledging the slowdown in sales of internal combustion engine (ICE) vehicles, Brandstaetter confirmed that Volkswagen Group remained committed to the Chinese market. The company plans to introduce 17 new ICE models in China by 2030, while also promoting the development of hybrid technology and gradually transitioning petrol models into plug-in hybrids. As the industry evolves, consolidation and well-laid-out market strategies will be essential to ensure the long-term success of the electric car market.
RELATED:
- Polestar Delivered Almost 16,000 Electric Cars during Q2 2023
- Wuling Lindu electric bikes unveiled in five unique models with up to a 72V 20Ah battery
- Best Gaming Monitor of 2023: Acer, Asus, Dell, Lenovo & More
(Via)
