Korean Media: Volkswagen Falls to Third in the Chinese Market!

On February 10, the Korean media outlet "Korea Economic Daily" published an article stating that in China, the world's largest automotive market, Volkswagen's sales ranking dropped to third place last year, overtaken by the rapidly growing Geely Auto.

Data released by the China Passenger Car Association shows that Volkswagen's retail market share in China was 10.9%, down 1.3 percentage points from the previous year (12.2%). Volkswagen had previously been surpassed by BYD in 2024, losing its title as the top-selling brand in the Chinese market, and its sales ranking also fell to third place last year, behind Geely Auto.

At the same time, Geely Auto's market share in China surged from 7.7% to 11%. BYD's market share slightly declined during the same period, from 16.2% to 14.7%, but it still maintained the leading position.

Zhou Dongshu, Secretary-General of the China Passenger Car Association, said: "Volkswagen's sales in China are all conducted through joint ventures. It is still the best-selling foreign brand in China. In order to narrow the gap with Chinese companies, it is taking active measures."

Traditional foreign automakers, including Volkswagen, General Motors, and Toyota, are considered to be slower in transitioning to electric vehicles compared to their Chinese counterparts. Analysts point out that as Chinese consumers quickly embrace electric vehicles, market restructuring centered around local companies is accelerating.

Volkswagen is strengthening its localization strategy in China to launch a counterattack. The company plans to expand its collaboration with XPeng Motors, broaden the application of its electric architecture, and work with Horizon Robotics to independently develop semiconductors for next-generation intelligent vehicles in China.

In addition, Volkswagen is considering exporting cars developed and produced in China to overseas markets. This trend aligns with the tendency of Chinese automakers facing slowing domestic sales and turning their attention to international markets.

Meanwhile, Chinese companies such as Geely Auto and Zhi Dou Auto increased their market shares last year by focusing on the low-price car market. Last year, cars priced below 150,000 RMB accounted for more than 50% of new car sales in China.

Original: toutiao.com/article/1856726591654916/

Statement: This article represents the views of the author.