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Volkswagen Stays Firm on Sustainable Business Model, Avoids Discount Battle in China

Published: 6.6.2023

Volkswagen Group, one of the world's leading automakers, has made it clear that it will not engage in a discount battle in China "at any price." Ralf Brandstaetter, VW's China boss, emphasized the company's commitment to a sustainable business model, stating that Volkswagen will not compromise its principles by participating in price wars. The decision comes as Volkswagen faces increasing competition in its most crucial market from Chinese manufacturers, particularly in the electric vehicle (EV) segment. 


Chinese automakers like BYD have gained notable success with their electric cars, surpassing their Western counterparts in terms of market performance. While the pressure mounts on Volkswagen, the company remains steadfast in its strategic approach. Brandstaetter emphasized that Volkswagen's focus is on building a sustainable and profitable business, prioritizing long-term success over short-term gains. 


By refusing to engage in a discount battle, Volkswagen aims to maintain the value and integrity of its brand. The company recognizes that profitability is crucial for sustained growth and investments in future technologies. Rather than engaging in a price-driven competition, Volkswagen intends to differentiate itself through product quality, innovation, and customer experience. 


The decision also aligns with Volkswagen's broader commitment to sustainability and responsible business practices. By avoiding a discount battle, the company can maintain its pricing structure, which reflects the value of its vehicles and the costs associated with producing high-quality, reliable automobiles. 


While the competitive landscape in China's automotive market continues to evolve, Volkswagen remains confident in its ability to offer compelling products and services that meet the needs and expectations of Chinese consumers. The company is investing significantly in the development of electric vehicles and is committed to contributing to China's ambitious goals for reducing carbon emissions and promoting sustainable transportation. 


Volkswagen's stance underscores the importance of a well-defined business strategy that prioritizes long-term sustainability and brand value. As the Chinese automotive market evolves, competition will intensify, particularly in the electric vehicle sector. By focusing on a sustainable business model and offering differentiated value propositions, Volkswagen aims to maintain its position as a leading player in China's automotive industry. 


As consumers increasingly prioritize sustainability and seek environmentally friendly mobility solutions, Volkswagen's commitment to innovation, quality, and responsible business practices will continue to resonate with a discerning customer base. By staying true to its core values, Volkswagen aims to drive meaningful change in the automotive industry while delivering exceptional experiences to its customers in China and beyond. 


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