The skinny camel is bigger than the horse, and volkswagen, whose sales have been frustrated one after another, is still the top of the car companies in China, and even the strong Toyota cannot compete with it. However, Toyota has sounded the clarion call to catch up, and Volkswagen is in jeopardy.
1. Volkswagen crushes Toyota?
At the beginning of the new year, major car companies have announced their 2021 report cards. Toyota, which is in the limelight, has climbed against the market and has risen gratifyingly. Among them, FAW Toyota's cumulative sales last year exceeded 860,000 units, an increase of 8% year-on-year; GAC Toyota exceeded 820,000 units, up 7.6% year-on-year. The total sales of Toyota's two joint ventures reached a record high of nearly 1.69 million units. But compared to Volkswagen, Toyota is still not enough to see. SAIC Volkswagen's sales have not yet been announced, but FAW-Volkswagen sold 1.85 million units last year. Volkswagen only has one joint venture car company's sales in China, and it can crush Toyota.
2. A skinny camel is bigger than a horse?
In fact, in recent years, the public's life has not been good, on the one hand, at the global level, because the new energy transformation is too slow, and the results are too poor, and has been widely criticized, on the other hand, in the most important Chinese market, sales continue to plummet. 2019 is the highlight of Volkswagen in China, the annual sales of up to 4.23 million units, at the peak of the moment, leaving other joint venture brands far behind, and then fell sharply, in 2020, it slipped by about 10% year-on-year, fell to 3.8 million units, and continued to decline sharply in 2021.
Although SAIC Volkswagen did not announce sales, it is estimated that the sales volume of 1.1 million in the first 11 months is expected to be around 1.3 million this year, and with saic-Volkswagen's 1.85 million units, the total sales volume of North and South Volkswagen in China is about 3.2 million units. This is a huge difference from the sales of 4.2 million units at its peak. The weakness of Volkswagen's sales in China can be seen. However, the skinny camel is bigger than the horse, and even if Volkswagen falls so much, the overall sales can still stomp Toyota under its feet. Toyota plus Lexus in 2021, sales in China are expected to be around 2 million units.
3. Volkswagen Sunset West Mountain?
However, in the long run, Toyota will surely surpass Volkswagen. First of all, Toyota's sales in the Chinese market have been growing significantly over the years. The data shows that Toyota's annual growth in the Chinese market is about 8%. In 2014, the cumulative sales volume of all Toyota brands in China was 1.03 million units, accounting for about 10% of Toyota's global sales of 10 million units; in 2017, Toyota increased to about 1.3 million units, accounting for 13% of sales; and by 2021, Toyota increased to 2 million units, accounting for 20% of sales. Whether it is in terms of growth or sales share, Toyota is steadily moving forward at its own pace.
Second, volkswagen sunset west mountain. Although FAW-Volkswagen's sales in China in 2021 are as high as 1.85 million units, the absolute number looks good, but it should be known that in the past four years from 2017 to 2020, FAW-Volkswagen's sales have crossed the 2 million unit mark for four consecutive years, and the sales volume in 2021 that just passed in 2021 is even less than the sales volume of 1.9 million units in 2016. Saic-Volkswagen is even more unbearable, with sales of only 1.1 million units at the end of January-November last year, a sharp drop of 18% year-on-year, and there is still a gap of 400,000 units from the annual sales volume of 2020, and negative sales growth for three consecutive years has become a foregone conclusion.
Finally, in addition to sales data, toyota has also achieved anti-overtaking of Volkswagen in terms of brand power and product positioning pricing. Under the strategic guidance of lean production and capacity control, Toyota has ensured its brand influence in the Chinese market and product price positioning. As we all know, Toyota has almost no discounts in the terminal market, and many models are also sold at a premium, which is in short supply. In contrast, volkswagen, in recent years, the price for volume has reached the extreme, the terminal sales discount is very large, and the Passat reduction, Tiguan particle trap and other scandals are frequent. Whether it is bicycle profit or brand power, Toyota has long surpassed Volkswagen.