Tag: Volkswagen AG

Price War Over Electric Cars Erupts in China

Chin@Strategy

A cutthroat price war has erupted in the world’s largest automobile market. Within the span of a week in March, Volkswagen’s Chinese joint venture slashed prices on its ID.3 electric cars by 18 percent. Changan Automobile, one of China’s state-owned car manufacturers, offered $3,000 cash rebates, free charging credits and other incentives for its electric vehicles. BYD, the country’s biggest E.V. maker, unveiled a second round of markdowns in a month for some of its older models. Amid slumping auto sales, car brands are going to extremes to stay competitive,…

China’s Car Buyers Have Fallen Out of Love With Foreign Brands

Chin@Strategy

For years, foreign automakers in China had a bead on customers drawn to luxury brands, like the Cao family in Shanghai. Not anymore. Ben Cao and his wife, Rachel, both 36, are trading down from two Porsches to one, a gasoline-fueled $290,000 Porsche 911 sports car, and buying their first electric vehicle, a $70,000 sport utility vehicle designed and manufactured in China by a company called Li Auto. “If you’re sitting in a Li Auto, the first feeling is of luxury,” said Mr. Cao, a business consultant. The rapid rise…

Volkswagen Will Invest $193 Billion in Electric Cars and Software

Chin@Strategy

Volkswagen said on Tuesday that it would spend $193 billion on software, battery factories and other investments as it aimed to make every fifth vehicle it sold electric by 2025. The automaker, the world’s second biggest after Toyota, will also focus on expanding its presence in North America, where it has struggled for years, and becoming more competitive in China, one of its most important markets, said Oliver Blume, Volkswagen’s chief executive. Mr. Blume laid out a 10-point plan for helping Volkswagen pivot to electric vehicles, a path it began…

China’s Leading Electric Carmaker Has Arrived in Germany

Chin@Strategy

Germans take huge pride in their automotive industry, and have never been eager to abandon their Audis, BMWs or Mercedes-Benzes for foreign makes. But with a goal to change that, a Chinese automaker that sells the most electric cars in the world has begun offering three of its models in Germany. BYD, founded in 1995 under the name “Build Your Dreams,” has become a behemoth in China, the world’s largest auto market, by focusing on electric vehicles. Last year it sold a total of 1.86 million battery-powered cars, including plug-in…