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VW Bets on EVs for China Growth as Chip Shortage Hits Sales

  • China sales declined 14% to 3.3 million vehicles last year
  • Automaker aims to double sales of ID electric cars this year
World Premier of the Volkswagen AG ID.5 Electric Automobile
Photographer: Krisztian Bocsi/Bloomberg
Updated on

Volkswagen AG is betting demand for electric vehicles and easing supply constraints will help it return to growth in China this year, after the global chip shortage dented sales in 2021.  

Deliveries fell to 3.3 million vehicles last year, down 14% from 2020 when the first wave of coronavirus swept through the country, China Chief Executive Officer Stephan Wollenstein told reporters in Beijing on Tuesday. That missed the group’s internal target, he said.