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Part of German carmakers are struggling with market shifts in Europe as Chinese manufacturers, including Chery, seek production partnerships and gain market share.

How does The rise of Chinese car sales in Europe affect Volkswagen Group?

Volkswagen Group faces increased financial pressure due to rising competition from Chinese manufacturers in Europe. Chinese automakers are gaining significant market share in Europe, which is intensifying competitive pressure on domestic manufacturers like Volkswagen Group, especially as electric vehicles carry lower gross margins.

Reported by 1 independent outlet Written Sep 24
Effect
Strong negative
How direct
2 steps, all reported
When
Over the long term
The story
Gone quiet

How it reaches Volkswagen Group

Reported by news outlets

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Why it matters

The market shift is being driven by high prices for gasoline and diesel in Europe, causing new car customers to seek lower transportation costs. While demand for electric vehicles is increasing, Volkswagen Group is still under significant financial pressure because battery cars have a lower gross margin than conventional cars.

What would change this answer

Chinese manufacturers slow their sales growth in EuropeThe competitive pressure on Volkswagen Group would ease
Volkswagen Group successfully increases the gross margin of its electric vehiclesThe financial pressure on the company would lessen

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