As we know, Tesla has been considered a giant in the automotive industry throughout the world. Herbert Diess, who is the Chief Executive of Volkswagen, has the opinion that Europe’s automotive industry has the potential to easily leave behind Tesla in the coming years if it kept moving at the same pace. According to his estimates, the sales of Volkswagen would increase and it would be able to acquire the largest market share in Europe by 2025. He acknowledges that Tesla has been competent enough to boost its sales through a good reputation and performance efficiency, but Volkswagen, according to him, will close all these loopholes in the coming years.
He elucidated, “Tesla is currently in the lead when it comes to EVs, probably also because it is the most digital car company already and they have some advantages. We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales.” Manufacturing electric vehicles (EV) is not only the specialty of Tesla; Volkswagen also specializes in this and is making every attempt to compete with Tesla and engrave its name at the top of the list. However, there is still a long way to go.
At the World Economic Forum, Diess said that he already knows what market demands are in the present as well as in the future, but if we solve our supply chain issues, then no one can stop Volkswagen from reaching the heights. He said that Europe has been the most affected by the recent coronavirus pandemic, which has dissembled its supply chain sector adversely. They have faced a lot of difficulties in acquiring car parts across the world, which has ultimately slowed down their growth in one way or the other, thereby reducing their sales.
The market share of Volkswagen, as depicted on the Frankfurt stock exchange on Tuesday, was also 0.9% lower due to these constraints. Hence, overtaking Tesla in these circumstances would be a big challenge for Volkswagen, without any doubt, but coping with the supply chain problems will ultimately drive them to their desired track.
The CEO of Volkswagen said, “I think for Tesla, too, ramping up now will probably be a bit more challenging. They are opening up new plants, and we are trying to keep up with their speed. We think in the second half of the year, we are going to create some momentum.”