The Wall Street Journal, citing data from Jato Dynamics, reported that German automaker Volkswagen (XETRA:VOW)(VWAGY) is losing market share in China due to heightened competition from domestic players, including BYD Company (BYDDY).
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Volkswagen’s recent delivery numbers in China (including Hong Kong) show an improvement. In October, Volkswagen delivered 263,400 vehicles in China, up 11.3% year-over-year. However, for the 10 months of 2022 (January to October), Volkswagen’s deliveries declined by 5.9%.
Excluding the Asia-Pacific region, Volkswagen’s deliveries declined in all other markets for the 10 months that ended in October 2022.
The Wall Street Journal report highlighted that Warren Buffet-backed automaker BYD has seen its market share double. Also, Nio (NYSE:NIO) and Xpeng (NYSE:XPEV) are popular among Chinese consumers.
Besides for competition, supply shortages and higher energy costs negatively impacted Volkswagen’s financials.
Is Volkswagen Stock a Buy, Sell, or Hold?
Volkswagen stock has a Moderate Buy consensus rating on TipRanks based on four Buy, one Hold, and one Sell recommendations. Furthermore, its price target of €223.80, implies 22.3%.
Meanwhile, Volkswagen stock has a Neutral Smart Score of six out of 10 on TipRanks.
