German automaker Volkswagen has a positive view on the strong competition in the Chinese market with local electric vehicle (EV) brands, as it drives the industry to invest and innovate, said Volkswagen CEO Oliver Blumein an interview with China Global Television Network (CGTN) in Beijing on Tuesday.
Today, Volkswagen's network in China features 39 plants, 90,000 employees and around 50 million customers. Having built a strong foundation in the country, Volkswagen attaches great significance to the Chinese market, said Blume.
"The China market is very important for Volkswagen. We are here in China since 40 years ago. The Chinese market is developing with a high speed, very dynamic in terms of electromobility, digitalization, artificial intelligence, autonomous driving. Therefore, we are investing in our own development and software capacities. For example, 2.5 billion euros in the Anhui Province in our engineering center, but also strong investments together with our joint venture partners," he said.
The new energy vehicle market has witnessed robust expansion in China over the past few years. In 2023, electric passenger cars accounted for 69 percent of the country's sales, while plug-in hybrids gripped 31 percent.
As China's EV market maintains its strong growth momentum, local brands have also sprung up with innovative and quality products. But Blume said he's not worried about the strong competition, as it actually benefits Volkswagen and the sector at large.
"I have a very positive view on the situation of competition. The EV market is developing also very quickly in China. We are expecting in 2025, already around 50 percent [will be] new electric vehicles on the market, [including] the battery electric vehicles and the hybrids, and therefore this is a quite big market today. In some technologies, China is a leading industry, it's a powerhouse of innovations. And therefore, I think for all car manufacturers around the world, they can benefit from the Chinese speed, from the Chinese spirit in developing innovations. And so it's very positive to have strong competitors in the market, because it drives the industry, it brings the industry to invest, and it brings the industry to innovate," he said.
Blume said Volkswagen has strong expectations for its future in the Chinese market.
Last year, the Chinese market closed with around 22 million cars delivered to the customers, and by the end of 2030, the annual production is expected to increase to between 28 and 30 million cars a year, according to Blume.
Volkswagen has positive view on strong EV competition in China: CEO
Volkswagen has positive view on strong EV competition in China: CEO
