Volkswagen Group China boss, Ralf Brandstätter, is preparing for a year of rebuilding in 2025, looking to protect the equity of his company’s car brands rather than engage in the fierce EV price battle between Tesla, BYD, and Xiaomi. The oversaturated Chinese EV market, with 130 competing brands, has left little room for profit for most players, prompting Brandstätter to remark that ‘China’s car market has lost all reason.’ Volkswagen is gearing up for a new cycle of affordable EVs, hoping to boost its China sales by a third and fully utilize its 4 million car capacity. The company’s global position has been affected by China’s property market woes, leading to a loss of volume and market share to rivals like BYD. Despite the intense price competition, VW is planning a transition year in 2025, saving its efforts for next year when it will introduce competitive EV models without solely relying on price cuts.
Western Carmaker Opts Out of China’s Electric Car Price Wars
