The automaker aims to rebuild China with its lineup.
In the first quarter, Volkswagen AG outperformed forecasts thanks to increasing shipments and robust demand in the US and Europe, which helped offset declining sales in China.
With a wider selection of products and technologies suited to regional preferences, the company hopes to catch up in China this year.
China’s BYD overtakes VW to become China’s best-selling automaker.
As VW works to cut orders accumulated from months of supply chain disruption, adding pressure on the company and forcing aggressive price cuts for electric vehicles, the company faces the possibility of falling prices for its vehicles. A Tesla Inc.
Although the market as a whole expanded, VW’s deliveries in the country’s biggest market decreased by 15% in the first quarter. To lessen its reliance on one market, the company has taken steps to increase its market share in the US, where it is also in demand.
The business intends to construct a new plant in South Carolina and is also spending €4.8 billion to construct the first battery plant outside of Europe in Canada.