Volkswagen AG said it expects to double sales of its ID-series electric cars in China this year and be even more successful, but it may be hampered by a lack of semiconductor products.
The ID series, which Volkswagen makes in its Chinese joint ventures with SAIC Motor and FAW Group, is the basis for these plans in a country with the world’s largest car market.
Last year, the German automaker sold 70,625 of its ID electric cars in China, falling short of its goal of selling 80,000 to 100,000 electric cars. Production suffered from regional COVID-19 outbreaks and chip shortages.
Stephan Wollenstein, head of Volkswagen in China, said at a briefing in Beijing that the company is “fairly confident that we will see a doubling of actual sales,” but that goal is currently “not secured by the supply of semiconductor products.”
Volkswagen Group, which along with its own brand owns other brands such as Audi, Lamborghini and Porsche, sold 3.3 million cars in China last year. That’s 14% less than it sold in 2020. The company plans to increase that number by about 15%, or about 500,000 units, this year.
The Chinese electric car market is experiencing very strong growth right now. It is dominated by Chinese brands led by BYD and Wuling, part of the GM Group. Tesla is in third place, being the only foreign brand in the top ten.
About 15% of all passenger cars bought in China between January and November last year were either battery electric cars or plug-in hybrids. At the same time, electric car sales accounted for 21% of total sales in November.