Volkswagen is losing market share in its single-largest market, China.
Volkswagen AG Said that despite some sales gains in recent months, it expects its market share in China to be around 16% this year, down from 20% since 2019.
The German giant is also facing soaring energy costs, supply-chain issues, and delays in delivering in-house software resulting in a disrupted model-release schedule, reports the Wall Street Journal.
China has been Volkswagen’s cash cow for years, making the market-share erosion a particular concern.
The country accounted for 37% of the company’s new car sales last year and 15% of the pre-tax profit from its passenger-car business.
The company operates 40 manufacturing plants in China. The report noted VW was the biggest foreign investor in China last year, citing a study by Rhodium Group, a research institute.
The report further added that Volkswagen has also struggled to win over younger Chinese consumers who are especially attracted to pure battery electric vehicles replete with gadgets—advanced voice-control systems, self-parking, and driver assistance technology.
VOLKSWAGEN AG TECHNICAL ANALYSIS
Daily Chart:
In daily chart Volkswagen AG is currently trading in down channel. Volkswagen AG is currently trading below 5 & 20 SMA.
RSI is in selling zone which indicates bearishness. And stochastic is suggesting down trend.
Volkswagen AG immediate support level is at 178.36 & resistance level is at 182.6.
HOW TO TRADE IN THIS WEEK
Volkswagen AG is trading in down channel it, will follow downtrend until their trend reversal. So, remain bearish on Volkswagen AG.
