Workers stand near a sign marking Volkswagen’s 40 years in Beijing, Wednesday, April 24, 2024. Women look at an Audi Q5 e-tron electric vehicle displayed at a Volkswagen event ahead of the auto show in Beijing, Wednesday, April 24, 2024. A worker prepares at a Bentley booth for the upcoming auto show to be held in Beijing, China, Wednesday, April 24, 2024. Workers prepare at a Bentley booth for the upcoming auto show to be held in Beijing, China, Wednesday, April 24, 2024.
EV sales in China, encouraged by green energy subsidies and tax breaks, jumped from 900,000 units in 2020 to 5.1 million last year, accounting for 24% of new car sales, according to the China Passenger Car Association, an industry group.
The battle is not only about digital gadgetry. Chinese EV makers have driven down battery and production costs and flooded the market with choices, depressing prices to levels that are likely unsustainable. China’s largest EV maker,, has dropped the price of its Seagull model below $10,000 at home, about half of what it sells for in Mexico and Brazil.
The company is developing a new EV platform, which includes the chassis and battery packs, just for China to try to bring down costs by 40%. That would enable VW to be profitable at current market prices, Brandstätter said, calling China an essential market for Volkswagen.
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