(Nov 11): Volkswagen AG said its namesake brand’s sales of electric vehicles (EVs) and hybrids in China climbed to a record last month, and forecast that growth will continue this year as its turnaround efforts in the world’s largest auto market start bearing fruit.
October deliveries of EVs and plug-in hybrids — a category known as new energy vehicles (NEVs) — surged nearly 350% from a year ago to more than 28,000 units, Volkswagen said on Wednesday. New models — including the ID. Aura T6 sport utility vehicle and the ID. Era 5S sedan — drove the increase.
The company said it expects to sustain growth in the coming months, with a goal to rank among the 10 bestselling NEV brands in the country next year.
The results represent a rare green shoot in China for Volkswagen, which recently reported that its ventures in the country had turned unprofitable as it fell further behind local brands in China’s overcrowded auto market. As part of its efforts to catch up, the manufacturer plans to introduce more than 20 new electrified models in the country this year.
The company has increasingly turned to Chinese partners to accelerate its transformation and offer cars catering to local tastes. Its collaboration with Xpeng Inc has produced a new EV architecture, while a software partnership with Horizon Robotics has added new self-driving capabilities.
Still, the automaker will have to show it can generate sustained volume growth in China’s ultra-competitive EV segment after a period of bruising declines in the country’s shrinking auto market.
Volkswagen’s group deliveries in China fell 30% during the first nine months of the year. Fully electric vehicles represented just 3.5% of the group’s sales there in the period, underscoring the gap between Volkswagen’s electrification ambitions and current market position.
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