WOLFSBURG (dpa-AFX) - German auto major Volkswagen AG (VWAGY.PK) announced Wednesday its new China strategy.
The company also said it intends to continuously increase its proportionate operating result to more than 2.0 billion euros by 2027, with the goal of achieving around 3.0 billion euros by 2030, including the fully consolidated Anhui joint venture.
Volkswagen aims for a 40 percent cost reduction with its locally developed China Main Platform or CMP. The Group plans to achieve cost parity with local competition in the compact car segment by 2026.
The Group has set sales targets in China of around 4 million vehicles by 2030, corresponding to a market share of about 15 percent. Every second vehicle sold is targeted to have an electric drive by 2030.
Over the next three years, the Group and its brands will launch 40 new models in China, half of which will be electrified. Until 2030, more than 30 BEV models are to be introduced to the market.
The total passenger car market is expected to grow to more than 28 million vehicles by 2030, which is around six to seven million more vehicles than at present.
At its China Capital Markets Day in Beijing, Volkswagen Group presented its strategy update for the Chinese market.
In China, the company aims for stronger local market and customer orientation. Substantially increased in-house development and software capacities as well as local partnerships form the basis for new products with state-of-the-art technologies, the firm noted.
The planned cost reduction will be achieved with its locally developed CMP, a key component in achieving cost parity with local competition in the price-sensitive segment for battery electric or BEV compact vehicles.
With its strategy, Volkswagen aims to achieve cost parity with local competition for entry-level compact vehicles by 2026. This segment is expected to account for more than 50 percent of the total market in the future.
Volkswagen Group CEO Oliver Blume said, 'China is our second home market. We continue to drive our strategy forward systematically and are going on the offensive with its execution. We focus on our Chinese customers' expectations and the accelerated time-to-market of our products. At the same time, we are pushing pioneering technologies, increasing cost efficiency, and deepening local partnerships.'
In Germany, Volkswagen shares were trading at 120 euros, down 1.11%.
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