Slow EV sales give VW a China reality check
Volkswagen had high hopes for sales of its latest electric vehicles in China.
But it looks like the German giant just got a reality check.
Industry experts say sales of the new ID models have been slow to get going.
Consultants LMC say two new ID.4 cars shifted just 1,213 units in May.
VW's venture with state-owned SAIC, which makes some of the EVs, had been aiming for sales of up to 60,000 vehicles this year, according to media reports.
But the new figures make that number look challenging.
An internal memo seen by Reuters suggests that staff buy ID.4 models.
Other sources say some joint venture factories in China are running at 10% below capacity.
The numbers are likely to puzzle VW.
In Europe the ID.4 is a top-selling electric car, with over 12,000 snapped up in the two months after launch.
But the Chinese market may pose a particular challenge.
Analysts say consumers there put greater emphasis on high-tech features, such as the self-driving technology offered by Tesla and local brands like Xpeng.
One Chinese shopper told Reuters that the VW cars look good... but just aren't smart enough for his tastes.
