Volkswagen Group China Remains Optimistic Due To Ongoing Recovery in Q3

In the first three quarters of 2020, Volkswagen Group together with its Chinese joint ventures delivered 2.66 million (-10%) vehicles in the Chinese mainland and Hong Kong, including around 117,200 imported vehicles. As the recovery continues, the Group maintains a positive market share growth of 0.5 percentage points YoY, and nearly 20% of the market. SUV deliveries remain a highlight, with YoY growth in the segment now 10.1% and models together accounting for 35.7% of the total fleet. NEV deliveries growth has reached 40.7% YoY, indicating great potential for upcoming local MEB series production. Premium brands Audi, Porsche and Bentley remain strong, while young entry brand JETTA has performed remarkably.

Volkswagen Group China CEO Stephan Wöllenstein said: “Our recovery to date has been meeting our expectations. With no further disruptions, our performance will be ahead of the market this year. Our core brands performed well under pressure and SUV deliveries remain very strong, so our strategy for this segment has served us well. We now look forward to the arrival of the ID.4, our all-new electric-only SUV which comes in two versions for China.”

He continued: “In Q3, the overall auto market achieved continuous YoY growth, which further strengthens our confidence in the long run. Despite COVID-19, our strategy to electrify China has continued at full power this year, with investments in JAG/JAC and Gotion preparing the company for the rapidly approaching e-mobility era and subsequent battery demand. The two MEB dedicated plants in Foshan and Anting are nearing the start of production. In addition, Audi and FAW will be working to jointly establish a company for the production of BEVs on the Premium Platform Electric (PPE) from 2024, bringing us a step closer to achieving a sustainable automotive future.”

Volkswagen brand, and its JETTA sub-brand, delivered 1,954,100 vehicles in the first three quarters of 2020. Volkswagen brand is picking up pace with the recovery of the overall market, and remained No. 1 choice for Chinese car buyers. Volkswagen brand further strengthened its leading position in the SUV segment, having delivered 558,700 SUVs, representing a 3% year-on-year growth, despite the Covid-19 pandemic. From January to September, the JETTA brand kept its momentum, having delivered over 100,000 vehicles to customers.

Audi saw the deliveries in China rise 4.4% YoY to 512,900 units in the first three quarters – the best ever performance of the four rings since its entrance to the Chinese market 32 years ago. This is the first time that Audi exceeds half million sales already in the first 9 months of the year. Domestically produced models like the A6L (+56.5% YoY) were the major drivers behind the growth.  And the four rings’ flagship model A8L also saw its year-on-year growth top 32.2 percent in the first three quarters.

ŠKODA delivered 124,900 vehicles to customers in the first three quarters of 2020. The SUV share of the fleet continues to grow and currently represents 53.8% of the total. Following KAROQ 2021 model’s debut and pre-sale at Beijing Auto Show, additional upgraded SUV and sedan models will hit the market in Q4.

Porsche concluded the first three quarters with 62,800 deliveries in its largest single market, China, which was also its first global market to recover from the impact of COVID-19. Deliveries in September were up over 19% YoY to more than 8,600 units, in Q3 also had a 7% growth with more than 23,200 units delivered.