Volkswagen Sees China Market Accelerating After Tough First Quarter

  • Demand in 2023 expected to rise 4% to 5% as restrictions ease
  • VW seeks to pick up pace on development to keep up with China

A Volkswagen of ID.6X during 2022 Central China International Auto Show in Wuhan.

Photographer: Getty Images/Getty Images

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Volkswagen AG expects a recovery in China’s passenger car market growth this year once supply-chain stresses and a wave of Covid infections following the country’s pandemic reopening ease.

The world’s biggest car market is set to grow between 4% and 5% this year to 23 million vehicles, said Ralf Brandstaetter, the carmaker’s head of China operations, accelerating from a rise of 1.6% last year. While demand indicators are pointing up, China is beset by a massive spike in infections following the relaxation of its Covid-Zero policy.