Market Share Challenges for BMW, Toyota, and Volkswagen During Speedy EV Transition
Market Share Challenges for Foreign Automakers
Market share losses are heating up for BMW, Toyota, and Volkswagen in China, the world's biggest automotive market, as they struggle with an accelerated shift to electric vehicles (EVs).
Declining Deliveries Amid Rising Local Competition
According to data from the China Passenger Car Association (CPCA), international marques delivered 480,000 units in August, reflecting a staggering 27 percent drop from the previous year. Their market share has shrunk to 36.6 percent, down from 48 percent.
- BMW saw its deliveries plummet 42 percent to 34,846 units.
- Foreign brands once commanded 80 percent of the market.
- Home-grown brands are gaining traction, with EV sales jumping 43.2 percent.
Pressure from Local Players and Price Wars
As foreign brands scramble to meet the EV demand, many are slashing prices across the board to defend their turf. Cui Dongshu, CPCA’s general secretary in Shanghai, pointed out that the limited EV options from foreign brands have led to a loss of appeal among Chinese consumers.
- BMW was the first to cease aggressive price discounts.
- General Motors and SAIC Motor reported significant year-on-year drops in deliveries.
- Volkswagen is planning to close a factory due to declining demand for combustion-engine cars.
For foreign automakers, the future hinges on delivering more electric models to appeal to younger buyers in China. The shift from petrol models to electrification is crucial for survival in an increasingly competitive landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.