Volkswagen Group China reports a significant decrease in total vehicle deliveries in China during the first half of 2022. The volume in Mainland China and Hong Kong amounted to 1.47 million vehicles (down 20.5% year-over-year). That includes 1,081,700 Volkswagen and its Jetta sub-brand (down 18.8% year-over-year).
According to the company, the performance was heavily impacted by prolonged COVID-19 restrictions that caused closures of plants (specifically at two local production centers Changchun and Shanghai), supply bottlenecks, and a slump in sales.
On the positive side, easing restrictions nationwide and the lifting of the Shanghai lockdown in June allowed VW to rapidly improve sales. Last month, Volkswagen Group sold 340,800 vehicles, which is 27.2% more than a year ago.
Plug-in car sales
Volkswagen brand's plug-in electric car sales more than doubled during the first half of this year to 75,900 (up 107.4%), which is some 7% of the total volume.
Almost 80% of that falls on the all-electric Volkswagen ID. models - 59,400 (up 751% year-over-year) or 5.5% of the total volume.
Volkswagen ID. sales significantly improved thanks to the strong June with a new record of over 17,600 units.
Volkswagen ID. sales in China:
- June: 17,600 (new record)
- Q1: 27,100 (up 3,225%)
- Q2: 32,300 (up 424%)
- H1: 59,400 (up 751%)
On top of 59,400 Volkswagen ID., during the first half of the year, the Volkswagen Group sold also some 4,100 other all-electric cars in China for a total of 63,500. Sales of plug-in hybrids by the group amounted to some 12,400.
Volkswagen ID. sales in China - Q2 2022
The German manufacturer maintains its goal to double ID. sales in China in 2022. Considering 70,625 units in 2021 (below an internal target of 80,000-100,000), it would be at least 140,000 this year.
Dr. Stephan Wöllenstein, CEO Volkswagen Group China, said:
“...We have already seen a resurgence in consumer demand in June and see indicators for a sales surge in the second half of the year. We are even more ambitious in the NEV market, aiming to more than double our ID. sales in 2022.
Our top priority now is to restore consumer confidence and ensure stable production and supply chains. We believe the recovery is already fully underway and are optimistic about our performance in the second half of this year, if the pandemic situation does not worsen and the general semiconductor shortage situation continues to improve.”
According to Stephan Wöllenstein (via Reuters), monthly sales of the ID. models in the second half of the year are expected to be at 15,000-20,000.
However, market analysts noted that Volkswagen is far behind BEV market leaders in China. Yale Zhang, head of Shanghai-based consultancy Automotive Foresight, said that Tesla generates several times higher volume.
"No one at Volkswagen should be happy about that."
In China, the Volkswagen brand offers five MEB-based EVs through two separate joint ventures:
- FAW-Volkswagen - production plant in Foshan, up to 300,000 annually
- SAIC Volkswagen - production plant in Anting, up to 300,000 annually
Sources: Volkswagen, Reuters