Following the coronavirus pandemic, Volkswagen AG expects the Chinese car market to return to last year’s level by early summer, with the country’s vehicle sales showing signs of fast recovery, reports China Daily. The world’s largest carmaker estimated that China’s vehicle sales will rise to around 1 million in March, up from 250,000 in February when coronavirus was at its height in the country.
Stephan Woellenstein, Volkswagen Group China CEO, is reported to have said, “There are more and more signs that business is recovering. By the middle of the year, we could be back to last year’s level. Hope is returning to the Chinese market.”
The group has resumed production of vehicles and components at twenty-two of their twenty-four manufacturing bases across China. Woellenstein stated that some are running at a reduced capacity, but are ready to increase production when demand picks up.
VW is said to be sticking to the 2020 plan it announced last year to invest more than 4 billion euros in China with its partners. Around 40% of the investment will go into electric vehicles. Starting this year, Volkswagen plans to produce electric vehicles in China on its purpose-built platform. The group plans to sell 1.5 million electric cars in 2025 in the country.
“We assume that the recovery will continue and that we will be operating in a normal market environment again in 2021,” added Woellenstein.