German carmakers benefit from strong Q1 development in China: EY study

Source: Xinhua| 2021-05-31 20:24:23|Editor: huaxia
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BERLIN, May 31 (Xinhua) -- Germany's large car manufacturers Volkswagen, BMW and Daimler had a "strong kick-off" to the year and were able to benefit particularly from the growth of the new car market in China, according to a study published by consulting firm Ernst & Young (EY) on Monday.

Passenger car sales in the first quarter (Q1) of 2021 by Volkswagen, BMW and Daimler in China rose by 66 percent year-on-year At the same time, sales in the United States only grew 21 percent and even declined slightly by one percent in Western Europe, according to the study.

For all three big German car manufacturers, the Chinese market "continued to gain in importance" in the first quarter, the study noted. Four out of ten new cars from Volkswagen, BMW and Daimler were handed over to a Chinese customer.

"The boom in China continues" and the Chinese market became "increasingly important for the global automotive industry, while at the same time little growth seems possible in Europe," said Peter Fuss, senior advisory partner in the field of advanced manufacturing and mobility at EY.

China would also play an important role with regard to market introduction of new technologies and business models and the emergence of new suppliers, making it more important for car companies to "have a strong presence in this important market," said Fuss.

Overall, operating profit of the 16 international car companies surveyed more than quadrupled in Q1 compared to the previous year, according to the study. Passenger car sales increased by 15 percent to reach 16.9 million vehicles, but were still nine percent below the first quarter of 2019. Enditem