Volkswagen AG [VOW:GR] plans to double the sales of its ID series electric vehicles (EVs) in China in 2022, despite the global chip shortage, as reported by the Economic Times on January 11. The ID series plays a key role in Volkswagen’s EV ambition in China and is produced by Volkswagen’s Chinese joint ventures with SAIC Motor [600104:CH] and FAW Group. According to Volkswagen CEO Herbert Diess, the German automaker planned to sell 1m EVs, including pure electric cars and plug-in hybrids, in the worldwide market by 2021. Specifically, China was to account for 40% of this sales target. However, due to regional COVID-19 outbreaks affecting production as well as chip shortage, Volkswagen only sold 70,625 units of its ID series, falling short of its objective of at least 80,000 units in 2021.
In 2012, China’s State Council announced an Energy-Saving and New Energy Vehicle Industry Plan for 2012 to 2020, which identified pure electric cars as the main strategic goal. Currently, the Chinese EV market is dominated by local brands such as BYD [1211:HK] and Wuling, a Chinese marque under General Motors [GM:US], while foreign carmakers such as Volkswagen and Toyota [TM:US] still lag their Chinese counterparts in the market. According to consultancy Automobility, EVs took up around 15% of all passenger cars purchased in China last year through November.