Network based systems

Chinese and German automakers seek mutual benefits

December 27, 2021

VW, BMW and Daimler plan for electric future in PRC as Nio and Great Wall move to Europe

Automakers in China and Germany are stepping up efforts to explore their respective markets as the auto industry enters the era of electrification.

Volkswagen AG CEO Herbert Diess last week called for more cooperation with China, saying it would not keep pace with innovation if it did not face competition in the larger market. automobile of the world.

“We need more cooperation and presence in China, not less,” said Diess. “It would be very damaging if Germany or the EU wanted to decouple from China,” he said.

China is Volkswagen’s largest market in the world and also the world’s largest market for new energy vehicles.

Sales of electric and plug-in hybrid cars totaled 2.99 million in the first 11 months of the year. Another 400,000 are expected to be sold in December, according to the China Association of Automobile Manufacturers. The association said these sales will reach 5 million in 2022.

Diess said Volkswagen has significantly increased its sales target of NEV in China in 2022. It has launched the Electric ID. 3, identity document. 4 and identity document. 6 models in the country and plans to introduce more.

Volkswagen unveiled a campaign called New Auto in July that focuses on electrification, autonomous driving and software-driven mobility.

“We need to use Chinese speed and local technology platforms to stay globally relevant in New Auto,” said Diess.

Just a week before Diess’ remarks, German premium automaker BMW released a new “China First” strategy to increase its market share in the country.

The automaker said the strategy would allow it to react quickly to changes in the market, especially taking into account the expectations of Chinese customers at an early stage in the vehicle’s development.

Among other things, BMW will open three factories in China in 2022 and produce the 3 Series electric sedan there, said Nicolas Peter, BMW’s board member responsible for Chinese finance and affairs.

In total, the company will offer five electric vehicles in China in 2022, and that number will rise to around 13 by the end of 2023.

“BMW’s success in internal combustion engines has fully demonstrated this thinking (China First), and the BMW Group will continue to deepen its ‘China First’ approach to electrification,” he said in a statement. communicated.

Other automakers, including Daimler, the parent company of Mercedes-Benz, are stepping up efforts to increase their share of the Chinese new-energy vehicle market.

Daimler produces and sells three Mercedes-Benz-branded electric vehicles in China, and another is due to be added in 2022. It also sells an imported electric model in the country.

The German automaker has said it will only sell electric vehicles “where market conditions permit” from 2030.

“There is no doubt in my mind that China will play an important role in the future of our industry,” said Hubertus Troska, member of the board of directors of Daimler and Mercedes-Benz responsible for operations in China.

Chinese companies are stepping up their foray into Europe, with Germany one of the most important markets, with electrified vehicles.

The German International Motor Show, held in September in Munich, attracted Great Wall Motors, Huawei, Xpeng and Leapmotor to showcase their products and solutions.

In Germany, 70% of those polled said they would like to change their mobility behavior to reduce their carbon footprint, according to the Digital Auto Report 2021 by consulting firm Strategy &.

Chinese automakers are ahead of the European giants in offering such products. They do a much better job when it comes to intelligent operating systems for vehicles, industry experts have said.

New York-listed electric car startup Nio announced in December that it would make forays into Germany, the Netherlands, Sweden and Denmark in 2022.

Nio began its global expansion in September with Norway as a first step. It launched its ES8 flagship in the country, followed by its ET7 sedan in 2022.

Great Wall Motors has opened a European headquarters in Munich, which will serve as the base for China’s largest SUV and pickup manufacturer to reach more markets on the continent.

Its premium brand Wey will launch its flagship European model, which is a plug-in hybrid SUV, in early 2022. Its first European experience center in Munich is scheduled to open in 2022 and more than 60 service stations are to be installed. This year.

Great Wall Motors’ electric brand, Ora, has also announced its European campaign, with the first model to be delivered in 2022.

The brand said it will offer five models within two years for European customers, and more than 10 models will be available on the continent in 10 years.

Other major Chinese automakers including SAIC, BYD as well as electric car startups such as Aiways and Xpeng are exploring the European market.

Chinese battery makers, including CATL and Svolt, are building factories in Germany to supply car makers there.

“It is only when Chinese automakers enter developed country markets that they can truly participate in international competition,” said Cui Dongshu, secretary general of the China Passenger Car Association.

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