Volkswagen's Profit-First Strategy in the Face of Rising Chinese Electric Success

Volkswagen AG VWAGY plans to focus solely on profitability amid cutthroat competition from the Chinese automakers.
Volkswagen said it would not participate in the discount battle like its Chinese competitors, who are more successful with electric cars than their Western rivals, Reuters reported citing a statement from Chief Operating Officer Ralf Brandstaetter.
Instead of expanding its market share and sales volume, the German carmaker plans to leverage its strong market position to build a sustainable business.
"If we achieve sales of more than 4 million vehicles in this environment in 2030, with corresponding profitability, that is a position we could very well live with," Brandstaetter said to Reuters.
The company's deliveries for April 2023 jumped 39% year-on-year to 720,200 units. The increase was spurred by a 79% rise in China deliveries.
The Chinese car market will grow from its current 22 million to between 28 to 30 million by 2030, the report notes.
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Price Action: VWAGY shares are trading lower by 0.70% at $15.68 in the premarket session on the last check Wednesday.
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