A recent report claims that Volkswagen may surpass Tesla electric car sales by 2024.
Volkswagen is entering the fast lane.
The German automaker has recently been accelerating its bid to overtake electric car overlord Elon Musk 's Tesla.
“Deliveries of fully electric vehicles increased by 27% in the first half of 2022! VWGroup electric vehicle growth is in full swing,” the company said in a tweet on July 15. BEV deliveries more than tripled to 63,500 units. EV's order volume in Western Europe increased by 40%. "
China, the world's largest electric vehicle market, has become a bright spot for Volkswagen.
According to Reuters , the company's sales fell by about a fifth in the first half of this year compared with the same period a year earlier, which Mainly due to a sharp decline in sales in Europe. But battery electric sales were boosted by growth in China. BEV sales in Europe, traditionally Volkswagen's strongest battery electric market, fell 16.5% in the second quarter, while sales in China doubled.
The company told the world on Twitter: "Electrifying China: Doubling our ID sales this year looks promising. China CEO Stephan Wöllenstein expects monthly ID deliveries of 15,000 to 20,000. Our BEV deliveries have already increased more than 3x in the first quarter, reaching 63,500 units by half of 2022.
"Built for the future"
The ID series is Volkswagen's first dedicated electric vehicle range. Volkswagen's first pure electric luxury sedan in the Chinese car market, the ID AERO, debuted last month.
Volkswagen Chief Executive Officer Official Herbert Diess recently said the company "will make some significant investments in China"
"Volkswagen is building for the future and it sees a lot of the future in China," said Widener University marketing professor. Brian V. Larson said, "The sales performance Volkswagen is experiencing are the result of smart planning, aggressive market research and manufacturing investments. "
Larson said that global traditional car brands are recognizing that China is a unique market.
"Traditional internal combustion engine manufacturing brands have been making cars that meet the US and European markets: Chinese consumers are demanding additional benefits," he said.
'Formidable competitor'
While Tesla currently outsells VW in the EV category in China, Larson said VW's scale and its renewed focus on its home market "make it a strong competitor" A strong competitor, expected to continue its BEV sales success. "
"Volkswagen is committed to expanding its existing operations in China," he said. "Its growth plans rely on meeting the expectations of Chinese consumers and building excellent new electric vehicles."
Larsson said Volkswagen's participation in joint ventures with Chinese car companies "gives it unique insights and advantages in working with domestic partners." "
" Volkswagen has developed an innovative new modular electric drivetrain to power its many brands, which enables Volkswagen to reduce development costs by spreading them across Volkswagen Group 's many global products... ... It will be difficult for Tesla to replicate that," he said.
Larsson said Volkswagen has also begun designing cars specifically for Chinese consumers, and that new electric Volkswagens will be smart cars and have more software features.
Diss also said he hoped it might overtake Telsa by 2025, but a Bloomberg Intelligence report last month was more optimistic.
takes Tesla's crown
While Tesla will retain the global sales crown for at least another year, Volkswagen "is expected to overtake the U.S. company in 2024 and is already leading in Europe," the study said.
The German automaker is on track to overtake Tesla in BEV sales in 2024 as global BEV demand is set to more than double by 2025.
Bloomberg Intelligence said battery prices remain critical to cost-efficiency, with Volkswagen investing up to 30 billion euros ($30.2 billion) in the supply chain, including six new battery factories in Europe.
The company recently broke ground on its SalzGiga factory in Salzgitter, Germany.
"#SalzGiga will manufacture unified batteries for approximately 500,000 #ElectricVehicles per year," VW wrote on Twitter . “That’s what our mass-produced brands need!”
The new factory has a planned production capacity of up to 40 GWh and will supply approximately 500,000 electric vehicles
