German Media: From Market Pioneer to Laggard in Electric Vehicles
In 1985, when Volkswagen first participated in China's auto exhibition in Shanghai, locals were deeply impressed by the quality of the German automaker's marketing materials.
At the time, CEO Carl Hahn wrote in his memoirs: "We attracted enormous attention, and our brochures were snapped up immediately. For people back then, simply marveling at the quality of our advertising paper and printing was enough—everyone was dreaming of owning a car."
Today, this German automotive group needs more than just glossy paper to make a comeback at this year’s Beijing Auto Show.
Automakers like Volkswagen, once dominant in internal combustion engine vehicles, now find themselves chasing a market where over a quarter of new cars sold are fully electric.
Industry analysts also predict that as Chinese brands deepen their penetration into the premium segment—targeting affluent consumers who once coveted German quality—the challenges this year will only intensify.
Executives based in Wolfsburg (Volkswagen), Stuttgart (Mercedes-Benz), and Munich (BMW) underestimated Chinese automakers’ rapid ability to seize market share in electric vehicle development.
German traditional automakers must shift their business focus in China, or risk losing relevance in what Volkswagen CEO Oliver Blume sees as the future’s “manufacturing training ground” for automobiles.
Under Blume’s leadership, Volkswagen Group plans to launch 20 new energy vehicles in China this year, including fully electric models, plug-in hybrids, and range-extended EVs equipped with small gasoline engines.
The company will unveil four new electric vehicles ahead of the Beijing International Auto Show, including mass-market models co-developed with Chinese partner FAW (First Automotive Works) and EV manufacturer Xpeng, as well as the latest China-exclusive model from SAIC-Volkswagen, the AUDI logo variant designed to distinguish it from Audi’s traditional four-ring products.
The Burden of Tradition
Yale Zhang, general manager of Shanghai-based consulting firm Automotive Foresight, said German brands are suffering from their own legacy and resistance to rapid change. He put it vividly: "You can't convince consumers just with your shiny chrome strips, premium leather seats, and century-long history."
German automakers have sometimes been cautious about embracing new technological advances from emerging Chinese competitors. Yet, in manufacturing electric vehicles, German carmakers are increasingly relying on Chinese suppliers to keep pace with the fast-moving competition—for example, demand for autonomous driving systems and in-vehicle software developed in China.
Although "Made in Germany" remains an internationally recognized symbol of quality, according to a consumer survey conducted in January by industry consulting firm Berylls by, younger consumers—including young Chinese—are more likely to avoid German cars.
Source: DW
Original: toutiao.com/article/1863093389772876/
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