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China and electric cars rekindles hope for automakers

Editorial Desk by Editorial Desk
January 12, 2021
in Business
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China and electric cars rekindles hope for automakers

FILE PHOTO: A woman holds a cable to charge up a Renault Kangoo ZE electric utility vehicle at a Renault automobile dealership in Cagnes-Sur-Mer, France, October 22, 2020. Picture taken October 22, 2020. REUTERS/Eric Gaillard/File Photo

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LONDON (UK) – After a dismal 2020, automakers have a newfound hope due to the unfettered sales of luxury cars in China and electric drives in Europe.

Despite a mild lag in China’s auto industry due to the pandemic, it sprang up easily after the shutdown. Meanwhile European auto manufacturers’ ventured into new emissions targets which has bolstered the sales of electric vehicles (EVs). EV’s are the new mainstream.

While VW brand sales fell nearly 10% in China, it’s luxury Audi brand had a spectacular fourth quarter. “2020 was a turning point for Volkswagen and marked a breakthrough in electric mobility,” said Ralf Brandstatter, head of the VW brand.

In China it saw 5.4% sales spike through out the year. The VW brand also noticed a growing demand for fully-electric cars globally.

BMW too saw sales rise 3.2% in the fourth quarter and ended 2020 down 8.4%. The automaker said sales were up by 7.4% in China.

Daimler’s Mercedes-Benz brand, continues to rule the market as world’s top-selling luxury carmaker for the fourth consecutive year running. Although it’s global sales fell 7.5%, the premium brand saw sales in China increase 11.7%, including a 22% jump in the fourth quarter.

On the Electric Vehicle front, automakers are now racing to develop EVs to meet emissions targets and challenge market leader Tesla.

Renault, which was underperforming last year saw it’s sales go up in it’s EV sales, which leapt more than 101% in the European market. The company confirmed it had met its 2020 EU emissions targets.

Renault’s chief executive officer Luca de Meo is gearing up to present a strategy update on Jan. 14 which is aimed at reviving some older best-selling models as EVs.

BMW also met its 2020 EU emissions targets as it’s global EV sales rose 31.8% versus 2019 and accounted for 15% of sales in Europe.

The carmaker said that by 2023 it would almost double its line-up of electrified vehicles to 25 models, with more than half of them fully electric.

Tags: AutomobilesEV
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