How Volkswagen Plans To Outdo Tesla
Volkswagen has its sights set on usurping Tesla's number one EV spot. Learn exactly how they plan to accomplish that feat.
Every automobile company is trying to bump Tesla out of the EV market. While giant corporations like Ford have yet to do so, some other brands are slowly climbing the electric-battery latter. Take Volkswagen, for instance, which plans to surpass Tesla’s EV sales by 2024. According to a recent report from Bloomberg Intelligence, the German manufacturer may be able to defeat Tesla’s longstanding number-one spot.
One of Volkswagen’s advantages in the race to beat its EV competitors is its notable brand roster. Volkswagen has ten different car brands under its authority, including Bentley and Porsche. With such notable names, the German company can sell new electric vehicles under those titles, appealing to any car enthusiast. Volkswagen plans to make new EVs among all of its brands over the upcoming years. The company already has the Porsche Taycan and the Audi Audi e-Tron model, which are already sold worldwide.
Car companies globally are looking at two regions to obtain EV dominance: China and Europe. Both China and Europe have regulations that highly advocate for electric-battery cars. By 2025, electric vehicles will be 25% of all car sales in China, while Europe’s EVs will be around 20%. One-fourth and one-fifth of overall car markets is not something to write off, and huge manufacturers like Volkswagen are already anticipating this humungous market shift. Because Volkswagen’s main operation is in Germany and has many manufacturing facilities around Europe, it’s already beaten Tesla in sales on the continent. China and Europe will decide who has the leading EV company over the next couple of years.
China might be a more complicated industry to break into for Volkswagen. Tesla is already ahead of the German company in the East Asian country, making up 13% of all EV sales in China last year. It falls short of China’s local car manufacturing company, Wuling, which made up over 16% of EV sales. The rest of the percentages are from small automotive companies in the Chinese region. So far, only 11% of all vehicles in China are electric, but that will soon change with newly implemented regulations from the government. Taxes and other federally imposed costs for automakers who aren’t making electric vehicles will surely accelerate EV purchases in China next year.
So far, Tesla only has two models available in China: the Model 3 sedan and the Model Y SUV. While both cars have successful sales in the country, other local automakers with more extensive rosters have gotten more attention and purchases. It also leaves a window for Volkswagen to sneak in with new models since China has become a prime region for automakers attempting to expand their EV deals. Since Tesla has recently transformed in Shanghai factory to only manufacturing cars for export, other brands could soon take over Tesla’s spot as one of the leading companies in the Chinese market.
Tesla has some vehicular tricks up its sleeves to continue its EV global reign. A proposed “Cybertruck,” revealed in late 2019, may soon be on the market for consumers to purchase. It’s got all the components of a pick-up truck but with a silvery, futuristic finish and an electric battery. The release date has been pushed back multiple times, but analysts believe its market debut could boost Tesla’s worldwide sales.
