For VW to promote extra EVs than Tesla or Nio in China, right here’s what wants to alter, says analyst
Volkswagen has had a tough time promoting its electrical car ID.4 in China. In response to Reuters, gross sales of the ID.4 have been beneath preliminary hopes, and the German car maker bought simply over 1,200 autos in two months. Tesla, in contrast, had bought greater than 6,000 items of its Mannequin Y, a compact sport-utility car, two months after launch.
Stifel analyst Daniel Schwarz has a novel idea on why VW has struggled to date —its sellers costume too conservatively. Stifel despatched thriller customers to VW, Tesla and Nio dealerships.
Stifel analysts have concluded that VW’s sellers costume too conservatively.
“Clearly the dealerships at VW look older than at Tesla or Nio. The gross sales personnel at Tesla/Nio [are] youthful and [were] perceived [as] ‘extra energetic and extra assured’ than VW’s gross sales personnel — the thriller customers have been stressing this very a lot, additionally that it influences the shopping for determination,” stated Schwarz.
He included a photograph that exhibits a VW salesman in a tie, in contrast with the extra relaxed Tesla and Nio gross sales groups.
Schwarz stated the excellent news was that VW itself is aware of it wants to enhance in China, and is including places. “We purpose for a community throughout each joint ventures of roughly about 150 of such prime places in high-frequency areas in China, the place additionally our opponents at the moment are presenting their automobiles, which might be a similar-sized community as additionally the NEV-only manufacturers have,” stated Stephan Wollenstein, head of gross sales technique, on a July 29 earnings name. NEV stands for brand new vitality car, the Chinese language time period for plug-in electrical autos.
“On high of [that], now we have our pure strengths with our established 2,000-unit vendor community, which, after all, is ready to ship a first-class service, which a few of our opponents are actually not in a position to attain as a result of merely of the maturity out there,” he added.
VW’s
VOW3,
choice shares have fallen 23% from their March highs. Nio
NIO,
has dropped 41% from its excessive, in January, and Tesla
TSLA,
is down 23% from its January highs.
https://www.marketwatch.com/story/if-vw-wants-to-sell-more-evs-in-china-says-stifel-something-needs-to-change-its-sales-staffs-apparel-11629382800?rss=1&siteid=rss | For VW to promote extra EVs than Tesla or Nio in China, right here’s what wants to alter, says analyst
