VW's acceleration towards electrification
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- According to Inovev's forecast, the Volkswagen Group will sell around 257,000 electric cars (BEVs) in Europe by the end of 2022, which is around 21,000 BEVs less than in 2021. While Audi can be satisfied with its BEV sales, Skoda is stable and the Cupra Born has made a good start, it is the VW brand itself that will probably not be able to exceed the BEV sales of the previous year. The brand itself is now adjusting its strategy for electric vehicles.
- The head of the VW brand announced at the end of October that it will only produce BEVs in Europe from 2033, instead of making this move between 2033 and 2035 as previously announced. However, VW cars with internal combustion engines will continue to be produced in the U.S. and China for a little longer. In addition, the product range will be simplified and more cross-brand platforms will be used.
- With this goal in mind, the VW brand plans to launch ten new BEV models by 2026 and be able to cover every segment in the future. With the ID7, whose study is still called ID Aero, there will be a counterpart to the Passat in 2023. A BEV with a price tag of under €25,000 is also planned. This could be the ID Life study, which could be marketed under the names ID1 and ID2. The ID6 SUV is only available in China so far, but could replace the Tiguan in Europe if it is successful there.
- Volkswagen as a group, but more importantly as a brand, needs to increase sales of electric cars if it wants to retain its position as world market leader. While Tesla currently dominates the BEV market in the premium segment, the market for entry-level models could soon be taken over by Chinese competitors. Hyundai also has plans for a BEV model for the entry-level segment, which should cost no more than €20,000.
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The electric Mini will be produced in China in the future
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- Since 2000, the Mini has been manufactured at a single location: Oxford (United Kingdom). BMW will launch the new generation of the Mini in 2023. A very important change compared to the current generation is that the 100% electric version will be relocated from the UK (Oxford) to China (Zhangjiagang), mimicking Mercedes' strategy for the electric Smart, which is being relocated from France and Slovenia to China. These relocations were likely decided due to lower labor costs in China and the much larger market for 100% electric cars (BEVs) in China than in Europe. For example, the Chinese electric car market will be 4.5 million units in 2022, compared to only 1.3 million units in Europe, three times less. And the gap between the two markets will continue to widen due to the strong growth of BEV sales in China. So there is the possibility of selling three out of every four electric cars produced in China, which is an argument that should not be underestimated.
- The electric Mini, to be launched in 2023, will be produced by a JV linking BMW with China's Great Wall Motors, which has not yet had the opportunity to work with a foreign carmaker, as SAIC, FAW, Dongfeng, BAIC, Chery or GAC have long done.
- This JV's plant in Zhangjiagang, near Shanghai, is designed to produce 160,000 electric Mini per year, while the UK plant in Oxford currently produces 40,000 Mini per year, representing 20% of Mini sales. By contrast, the next-generation electric Countryman, scheduled for 2023, will be made at the German plant in Leipzig. Today, this version is not yet available, as the Countryman is only available with an internal combustion engine and as a plug-in hybrid.
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Market balance Europe 9 months 2022
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Global market balance 9 months 2022
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Market balance USA 9 months 2022
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