Workers stand near a sign marking Volkswagen's 40 years in Beijing, Wednesday, April 24, 2024. That has left manufacturers like Volkswagen scrambling to develop new models for a very different market than at home. She is young and wants to play video games in her car. The digital features of her Zeekr 001, a European-designed electric car from China's, appeal to her.
That has left makers like Volkswagen, which sells about one-third of its cars in China, scrambling to develop new models for a very different market than back home, and expanding far beyond its roots as a maker of no-frills sedans used by Chinese taxi fleets. 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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