Volkswagen Group and Toyota Motor noticed their share of the world’s largest auto market shrink final 12 months, business knowledge confirmed on Wednesday, as legacy worldwide automakers ceded floor to Chinese language rivals.
VW’s two joint ventures in China with FAW and SAIC took a mixed 14.2% share in gross sales phrases in 2023, down from 14.8% in 2022, in accordance with knowledge from the China Passenger Automotive Affiliation (CPCA). Gross sales of SAIC VW and FAW VW embody manufacturers of VW, Audi and Jetta.
Toyota’s China JVs with GAC and FAW held a mixed 7.9% share, in contrast with 8.6% in 2022.
By comparability, Chinese language electrical automobile big BYD, which dethroned Tesla because the world’s prime EV vendor within the fourth quarter, led its residence market with 12.5% share, up from 8.8% in 2022.
Whereas the China ventures of VW and Toyota had been among the many prime 10 automakers by gross sales final 12 months, they weren’t among the many prime 10 new-energy automobile distributors. BYD and Tesla had been the highest 2 NEV producers in China.
The numbers epitomise how international legacy carmakers in China are dropping out to native rivals and struggling to compensate for a shift to electrical automobiles, amid a bruising value struggle and slowing demand because the nation’s post-COVID financial restoration sputters.
Final 12 months, Volkswagen’s battery-electric automobile deliveries grew 23.2% to 191,800 in China, whereas complete gross sales grew 1.6% to three.2 million automobiles.
The German carmaker，with plans to launch a China-specific entry degree electrical platform, has been betting on native partnerships to assist it within the nation’s EV race. It struck a deal in July with Xpeng, one of many smaller Chinese language EV makers.
Toyota, regardless of having prevented the sort of hit different Japanese automakers comparable to Nissan Motor Honda Motor have taken in China, additionally faces rising competitors available in the market the place it has informed sellers to increase output cuts at its JV with FAW, Reuters reported in November.
