The company needs to adjust its approach as EV sales are lower than expected.
Volkswagen’s boss Herbert Diess said, by the way of the H1 2021 financial result report, that the company must change its approach to electric car sales in China.
The volume of 18,285 all-electric cars in the first half of the year is lower than expected (only part of this falls on the ID.4, which is a worrying sign). We guess that the ID.4 (both X and CROZZ models) result is below 8,000 as of the end of June (the rest are older/other BEV models).
The target for 2021 is 80,000-100,000 ID. electric cars, which means that in the second half of the year, the company would have to sell at least three-times more BEVs than so far this year.
Herbert Diess explains that the electric car buyers are much younger and different from its existing customer base in China, which requires a different approach:
“Sales are picking up but it requires focus and different approaches as the customers for the EVs are much younger and different to our customer base we are having with the more traditional brands like Volkswagen in China,”
“We are noticing that we have to change our approach,”
“We have the financial power, we have the sales network, we are coming forward with new formats in the shopping malls, we are becoming much more digital and it’s going fast because we are much faster in China than we are in the rest of the world.”
One of the main things to improve will be more ID. retail sites in China (150 by the end of 2021).
The lower than anticipated BEV sales are important not only directly (revenues), but also because emission requirements. Industry analyst Matthias Schmidt notes that the Volkswagen Group probably will have to buy credits in China/U.S.
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