VW will not join discount battle 'at any price,' China CEO Brandstaetter says

BERLIN – Volkswagen Group will not participate in a discount battle in China "at any price," VW’s China boss, Ralf Brandstaetter, said in an interview.

The automaker is under growing pressure in its most important market from up-and-coming Chinese manufacturers such as BYD who are more successful with electric cars than their Western rivals.

"Volkswagen is focusing on a sustainable business model. In concrete terms, this means that we will not participate in the discount battle at any price," Brandstaetter said in an interview for the company's intranet.

"Our market position is strong enough. For us, the focus is on profitability, not sales volume or market share," he added.

Brandstaetter expects the Chinese car market to grow from its current 22 million to between 28 and 30 million by 2030.

"If we achieve sales of more than 4 million vehicles in this environment in 2030, with corresponding profitability, which is a position we could very well live with," he said.

VW aspires to be the biggest international automaker in China, he said, adding that it's irrelevant if another national manufacturer sells more than the German company does.

BYD outsold VW, which has led the market there for decades, as the top passenger car brand earlier this year.