Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 27 (Xinhua)-- Volkswagen cut its full-year sales target today and promised to improve its financial performance in the second half of the year by raising prices and cutting costs, Reuters reported.

Arno Antlitz, chief financial officer of ▲ Tuyuan Pexels Volkswagen, said the company had lowered its sales target to 9 million-9.5 million vehicles from 9.5 million because of a decline in sales in China in the first half of the year.

Antlitz said Volkswagen must begin to achieve results in reducing costs and increasing efficiency this year, and the group has no time to waste in the face of increasingly fierce market competition.

Volkswagen said it would focus on its strategy in the Chinese market in the next fiscal year, and it still hopes to become the largest international carmaker in the Chinese market, but its electric vehicle sales now lag significantly behind Chinese electric carmakers and Tesla of the United States.

Despite lower sales targets, Volkswagen's financial forecast for 2023 remains unchanged, but this is still in sharp contrast to the recent growth of several competitors. "I think the revised delivery forecast is still the best-case scenario," said Juergen Pieper, an analyst at Bankhaus Metzler. "the actual situation may be worse, and investors think the worst may not be coming yet."

Volkswagen is making a strategic shift to prove to investors that it can retain market share in the transition to electrification. CTOnews.com previously reported that Volkswagen yesterday announced an additional $700m (CTOnews.com note: about RMB 5.005 billion) for Xiaopeng and jointly develop electric vehicles for the Chinese market.

At the same time, Volkswagen is still trying to improve its profit margins, which now lag behind its main European competitors such as Renault and Strant, which had promised to put profits above sales. Antlitz said rising fuel vehicle prices and sales should help ease Volkswagen's financial position in the second half of the year.

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