In a recent media interview, Volkswagen CEO Oliver Blume acknowledged the company’s challenges in maintaining its position at the forefront of electric vehicle sales in China, citing intensifying competition from Chinese EV makers who are aggressively offering substantial discounts to drive sales. Blume believes that achieving a 10 percent EV market share would be a commendable milestone.

To address these market dynamics, the German automaker has adjusted its strategy, aiming to expand its product range in China to target customers in the entry- and mid-level segments, particularly emphasizing electric vehicles (EVs).

Volkswagen’s market share in China saw a decline to 14% last year from 18% in 2018, as domestic electric-only carmakers gained traction amid declining sales of combustion-engine vehicles.

Nevertheless, Volkswagen’s current EV offerings are positioned at higher price points compared to many Chinese electric-only rivals.