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Volkswagen China CEO Says Electric Vehicle Market Is Overheating Here’s Why

Volkswagen Group China CEO Ralf Brandstaetter believes the electric vehicle market is overheating. He also said that high capital investment and reduced prices for electric vehicles will ultimately harm consumers’ interests, as reported by British automotive publication Autocar UK. Brandstaetter believes that the auto industry is facing an overheated market. He was particularly critical of the reduction of electric vehicle prices in China.

Via: Car table HT
| Update on: Jul 09, 2023, 16:00 ONLY

The CEO of Volkswagen China has criticized Tesla for starting a price war by drastically slashing the price of its EVs. (AP)

Talking about the current electric vehicle market situation, Brandstaetter said that fierce competition in the market and high battery prices make manufacturers face heavy economic pressure. He also points to the fact that short-term sales success requires a very high capital investment. Like volkswagen The Chinese executive added that the situation is pushing EV startups to the point where they are facing financial squeeze and are either withdrawing or preparing to exit the market, or are in urgent need. new investment capital.

Also read: The Tesla Model Y becomes a bit more expensive in this country. Details here

China currently leads the global electric car market. Sharp discounts from automakers and some government incentives for electric cars have boosted sales and demand for them. Active discounts and rebates have been introduced by Tesla, which the CEO of Volkswagen China believes has negatively impacted the electric vehicle industry in the long run. “Fierce competition has led to deep price drops in recent months. This will ultimately harm consumers’ interests. They will not be able to receive service from brands that have ceased to be active. move or they’ll find the models they buy will be significantly discounted,” he said.

Brandstaetter’s comments clearly refer to Tesla, which started an electric car price war in China and other global markets in late 2022. Speaking of Volkswagen’s plans to cut such prices, Brandstaetter said that the company The company has no intention of engaging in an unfair market competition to achieve short-term delivery growth.

First published date: July 9, 2023, 16:00 pm IST


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