Market Share Declines: BMW, Toyota, and Volkswagen Struggle in China's EV Discount War
The EV Market Shift Impacting Foreign Car Manufacturers
Foreign automakers, including BMW, Toyota, and Volkswagen, are experiencing a downturn in market share in China. As domestic brands surge ahead, international marques are confronted with the repercussions of their delayed electrification strategies. According to the China Passenger Car Association (CPCA), the market share of foreign carmakers dropped from 48% to 36.6%, delivering 480,000 units in August alone, marking a 27% year-on-year decline.
Sales Performance of EVs in China
- EV sales jumped by 43.2% in August, totaling 1.03 million units, representing 53.9% of all deliveries.
- Only 10% of total EV sales came from foreign brands, including Tesla's 63,456 units.
- International car brands face a significant challenge as their offerings become less attractive.
Price Wars and Profitability Dilemmas
With declining market share, foreign carmakers are embroiled in a discount war to compete against domestic players. BMW took decisive action in mid-July by increasing car prices, moving away from discount strategies to maintain profitability.
Future Outlook and Industry Trends
- Foreign producers must elevate their electric vehicle output.
- Failure to adapt may lead to overcapacity issues, especially regarding traditional petroleum-fueled models.
- Volkswagen and SAIC's planned factory closures in Nanjing illustrate ongoing struggles, with an anticipated production capacity loss of 360,000 units.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.