Mutual Benefit And Win-Win For Chinese And German Companies

Mutual Benefit And Win-Win For Chinese And German Companies

With the establishment of NIO and Great Wall in Europe, Volkswagen. BMW and Daimler plan the future of electric vehicles in China. As the auto industry accelerates into the era of electrification. Auto companies in China and German are stepping up to open up each other’s markets.

Last week, Volkswagen CEO Herbert Diess called for more cooperation with China. Stating that it would not be able to keep up with the pace of innovation without facing competition from the world’s largest auto market.

“We need more cooperation and presence in China, not less,” Diess said. “If Germany or the EU wants to decouple from China, it will be very harmful,” he said.

China is the world’s largest market for Volkswagen, as well as the world’s largest market for new energy vehicles.

In the first 11 months of this year, sales of electric vehicles and plug-in hybrid vehicles totaled 2.99 million units. According to data from the China Association of Automobile Manufacturers. It estimated that 400,000 vehicles will be sold in December. The association stated that by 2022, these sales will increase to 5 million.

Diss said that Volkswagen has substantially increased its sales target for new energy vehicles in China in 2022 and launched an electric ID. 3. ID card. 4. ID card. Moreover, there are 6 models in China, and more models are planned.

Volkswagen launched an event called New Auto in July, which focuses on electrification, autonomous driving, and software-driven mobility.

“We must use China’s speed and local technology platform to maintain global relevance in the New Auto field,” Diess said.

Just a week before Diss made the above remarks, German high-end automaker BMW announced a new “China First” strategy to expand its market share in China.

The automaker stated that the strategy will enable it to respond quickly to market changes. However, especially considering the expectations of Chinese customers in the early stages of vehicle development.

Nicholas Peter, BMW’s board member in charge of finance and China affairs. Stated that, among other things, BMW will open three factories in China in 2022 and will produce electric 3-series sedans in the country.

By 2022, the company will provide a total of 5 electric vehicles in China, and this number will increase to about 13 by the end of 2023.

“BMW’s success in the field of internal combustion engines fully reflects this (China No. 1) thinking, and the BMW Group will continue to deepen its “China No. 1” policy in terms of electrification,” it said in a statement.

Other automakers, including Daimler, the parent company of Mercedes-Benz, are accelerating their efforts to expand their share of China’s new energy vehicle market.

Daimler is producing and selling three Mercedes-Benz brand electric vehicles in China, and another one will be added in 2022. It also sells an imported electric model in China.

The German automaker said that from 2030, it will only sell electric vehicles “when market conditions permit.”

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

Chinese companies are accelerating their entry into Europe, and Germany is one of the most important markets for electric vehicles.

The German International Auto Show held in Munich in September attracted Great Wall Motors. Moreover, Huawei, Xiaopeng Motors and Leapfrog Motors to showcase their products and solutions.

According to the “Digital Car Report 2021” by the consulting firm Strategy&, in Germany. 70% of the respondents said they want to change their way of travel to reduce their carbon footprint.

Chinese automakers are ahead of European giants in providing such products. However, Industry experts say that they have done much better in terms of vehicle intelligent operating systems.

Nio, an electric car startup listed in New York, announced in December that it would enter Germany, the Netherlands, Sweden and Denmark in 2022.

Nio started its global expansion in September, with Norway as its first stop. Furthermore, It launched its flagship ES8 in the country, and its ET7 sedan will follow in 2022.

Great Wall Motors opened its European headquarters in Munich, which will become the base for China’s largest SUV and pickup manufacturers to enter more markets on the European continent.

The high-end brand Wey will launch its European flagship model, a plug-in hybrid SUV, in early 2022. It planned to open the first European experience center in Munich in 2022, and set up more than 60 gas stations that year.

Ora, the electric brand of Great Wall Motors, also announced its European activities, and the first model will be delivered in 2022.

The brand said it will provide European customers with 5 models within two years, and 10 years later, more than 10 models will be launched on the European continent.

Other major Chinese automakers – including SAIC, BYD, and electric car startups such as Ai Chi and Xiaopeng – have been exploring the European market.

Chinese battery manufacturers including CATL and Svolt are building factories in Germany to supply automakers there.

“Only when Chinese auto companies enter the markets of developed countries can they truly participate in international competition,” said Cui Dongshu, secretary general of the China Passenger Car Association.

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