In a recent interview with foreign media, Volkswagen executives said that by 2022, Volkswagen will reorganize eight factories around the world to produce electric vehicles. Volkswagen will increase the production of electric vehicles to about 1 million by the end of 2020, thus surpassing Tesla, and China is its key battlefield. At the 2019 media conference, Volkswagen plans to invest more than 30 billion euros in the field of electric vehicle manufacturing in 2023, including 15 billion euros in China. According to the plan, Volkswagen plans to produce electric vehicles in two Chinese factories next year, with the capacity of 600000 vehicles in two Chinese factories, while Tesla is still committed to achieving the annual production target of more than 500000 vehicles. At present, the new SAIC Volkswagen MEB plant of Volkswagen in Anting, Shanghai has been put into trial operation, with a capacity of 300000 vehicles in the first phase. It will produce Audi, Volkswagen, Skoda and other electric vehicles based on the MEB platform, and the MEB plant reconstructed based on the second phase project in Foshan is also in progress.
We have started discussions with the Chinese government and energy producers. Mr Fung said. According to the goto zero strategy, Volkswagen will launch at least 10 domestic models in China by 2023, and will produce 1 million MEB models annually by 2025. Volkswagen also revealed that in terms of battery supply, Volkswagens first models will cooperate with Ningde times.
The reality is that the barriers to entry are still high. Mark Warburton, an analyst at Bernstein research in the US, said it would be difficult to build a car and the cost of switching to an electric vehicle would be high, although it might still be led by traditional manufacturers.
Its certain that Volkswagen will develop towards electric vehicles. Yin Chengliang, director of the automotive energy saving Technology Research Institute of Shanghai Jiaotong University, said in an interview with the first financial reporter that Volkswagen had been committed to developing diesel vehicle energy saving technology for many years, and even proposed that the emission standard after euro u2165 should rely on clean diesel vehicle technology, but had to change the strategy after encountering the double impact of emission gate and the wave of electrification. Yin Chengliang pointed out that the development of electric vehicles is a major trend in the development of new energy vehicles in the world, and Volkswagen cannot stay out of the business, especially in its most important overseas market, China.
According to the research report released by Dongxing securities, the Volkswagen MEB platform covers a variety of pure electric vehicles from A0 to B, and can share part of the process with the original line, so the scale effect will be obvious. At present, the joint venture brand electric vehicle market is almost blank. Teslas product positioning is relatively high, while most foreign-funded enterprises electric vehicle entering China progress and brand power are not as good as Volkswagen. All models of MEB platform will have a considerable first mover advantage, helping Volkswagen expand market share against the market.
In Chinas electric vehicle market, the current independent brands still occupy a large market share due to the first mover advantage. After the decline of subsidy policy this year, the sales volume of new energy vehicle market began to decline, and the sales volume of many independent vehicle enterprises declined. With the gradual introduction of electric vehicles by foreign vehicle companies such as Volkswagen, this will bring pressure and challenges to the independent brands. The China Automobile Circulation Association predicts that by the end of 2019, the market share of joint venture pure electric vehicles is expected to reach more than 15%, and in 2020, the market share is expected to exceed 30% or even higher.