The German Giant “Volkswagen” Is The Worst Performer Among The Companies In The Chinese Market

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The German “Volkswagen” VW topped the list of the worst performing car companies last July, in the Chinese market, which is still declining by more than 10%, as it sold 1.88 million vehicles in the mentioned month, a decrease of -11.9%, although sales in general reached since The beginning of this year 14 million units, an increase of +16.9%.

While Wuling recorded the best performance, with a sales growth of 55.1% since the beginning of the year, Volkswagen lost -6.9%. In July 2021, the Chinese market continued to decline in double digits after losing 12.4% in the previous month, as sales decreased, by -11.9%, resulting in year-to-date sales of 14 million units, up 16.9% compared to the year 2020.

Compared to pre-corona levels, the market is now practically stable, and compared to the performance of July 2019, sales increased only 0.2%.

As for brands, the sales of Volkswagen, the leader in the worst performance, declined by 6.9% in the list of companies from the beginning of the year to date, as its Chinese market share declined to 8.3%, followed by Toyota in the rank of shares and its sales increased by 16.5%. While “Wuling” recorded the best performance and gained 55.1% since the beginning of the year, according to the “Focus to Move” website.

Since 2016, the Chinese market has slowed down after it gained a 30% share of global sales, while it is clear that the future development is driven more by real solutions, and is linked to two main issues that emerged strongly when the market boomed in the past decade, namely pollution and traffic congestion.

It is noteworthy that the Chinese authorities have shifted their attention from the total size to the engine mix, and are gradually establishing incentives for small and low-emission cars, while supporting investment in vehicles that run mainly on electricity.

On this basis, in January 2017, fees for vehicles with an engine more than 1.6 liters were increased from 5% to 7.5%, and in the same year sales included 28.2 million, an increase of 0.9%.

However, in 2018, sales of new light vehicles gradually lost momentum, after the slowdown in domestic demand, to halt the domestic market on a positive path that lasted for years, as it lost for the first time since the 1990s and ended 2018 with the sale of 27.5 million units, a decrease of -3.7%, which included Sales in the whole of 2019 were 25.7 million units, down 6.5% from the previous year.

Due to the spread of Corona, sales of 2020 decreased, as 2,473,045 units were sold, recording a decrease of 4.1% compared to 2019, before the start of 2021 in a very positive year in China due to the very low sales levels in the first quarter of 2020, and 6.03 million units were sold in the quarter The first, up 61.7%, and second-quarter sales remained almost flat, declining 1.3% to 6.12 million units.

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