German “Volkswagen” seeks to increase its sales through China and America

“While most of the revenue continues to come from Europe, China and North America will be the growth engines in the future,” the company’s CEO, Oliver Bloom, told reporters on a call ahead of an investor meeting.

He added, “We want our sales to increase by five to seven percent every year until 2027.”

Last year, the group, which includes 10 brands including Porsche, Audi and Skoda, announced revenues of about 280 billion euros ($ 306 billion).

Volkswagen also aims to achieve higher returns on sales of between nine and 11 percent by 2030, compared to a profit margin of 8.1 in 2022.

An extensive cost-cutting plan, as well as a new strategy that gives the group’s individual brands more independence, is expected to help achieve the new targets.

But the focus will be on the transition to electric vehicles as the global battle for dominance in this market rages on.

Volkswagen announced in March that it plans to invest more than 120 billion euros ($131.6 billion) in electric vehicle transition and digitization projects.

In China, local electric vehicle manufacturers such as BYD are outperforming Volkswagen.

Blum acknowledged the “great acceleration and change of technological innovation” in China, where “many new competitors” have emerged.

But he noted that Volkswagen is determined to remain “the most successful international car manufacturer in China.”

China is Volkswagen’s most important market, accounting for around 40 percent of the group’s total sales.

Blume said Volkswagen currently controls a Chinese market share of 14-15 percent and intends to maintain it, in part by developing products “in China for China”.

He said the company’s “very strong” internal combustion engine business in China would help raise funds for “new investments in the smarter vehicle approach and electric vehicle battery technology.”

North America also plays an important role in the group’s plans for the coming years, as Volkswagen seeks to “significantly expand” its market share.

Blume said Volkswagen “has all the ingredients we need to grow” in the region, including investments in new electric vehicles and a planned battery cell plant in Canada.