Volkswagen CEO Oliver Blume says Europe can no longer rely on car exprots
By Areeb Khan
Volkswagen CEO Oliver Blume warns that European automakers cannot rely solely on export profits to secure their future. Rising competition from Chinese carmakers, weak demand and increasing costs are pushing Volkswagen to improve competitiveness, reduce development time and strengthen its Europeans
Europe ke kaafi saare manufacturers, especially German carmakers, ka jo operating model ab tak unki business strategy ki backbone raha hai, woh aaj ke time mein practically obsolete ho chuka hai. Volkswagen CEO Oliver Blume ne 2016 Paris Motor Show ke during is baat ko acknowledge kiya tha. Unka yeh statement sirf Volkswagen ke liye hi nahi, rather BMW, Mercedes-Benz or European market ke do or major automotive groups, Stellantis or Renault ke liye bhi equally relevant hai. Volkswagen, Stellantis or Renault these three Europe mein total vehicle production ka 60% se bhi zyada pie account karte hai. Saath hi, Europe mein hone wali new car registration mein bhi in three giants ka half se zyada ka share hai, jismein Volkswagen leader hai or rest of the two brands se kaafi lead maintain karta hai. But Europe mein ab profit margins achieve karna increasingly difficult hota jaa raha hai. Iske behind regulatory issues toh hai hi, saath hi market bhi abhi tak pre-pandemic level par recover nahi kar paya hai, means pehle ke comparison mein abhi bhi few cars register ho rahi hai. Other than this, Chinese brands ki entry ne bhi competition ko kaafi increase kar diya hai, or abb yeh brands Europe ke car market mein 10.7% market share hold karte hai.
Europe can no rely on exports In manufacturers ke liye real problem (although economic terms mein Renault ke liye itni badi problem nahi hai) Chinese manufacturers ka aana nahi hai, rather real problem hai ki Chinese manufacturers ko other markets mein aane ki desperate kyun hai. China mein unhone car manufacturing ka itna massive structure create kar diya ki abb wo zaroorat se zyada bada ho gaya hai. Iske result mein overcapacity ki problem create ho gayi, jo Europe ki other facotories mein dekhne ko milti hai, ya phir usse bhi zyada ho sakti hai. China mein manufacturers ne quickly cars produce karna or apne citizens ke liye jobs create karne par focus kiya, but abb unke paas production capacity itni zyada ho gayi hai ki usse utilize karne ke liye unhe other markets mein bhi expand karna pad raha hai. Issue yeh hai ki China mein new car registration every year 26 million se bhi zyada ke peak par reach kar gaye the, jo European Union ke total se double se bhi zyada hai or United States ko bhi beat kar diya tha sales mein. But itni massive growth ke baad market oversaturated ho gaya, jiski wajah se registrations mein decline dekhne ko milne laga. 2026 ke figures indicate karte hai ki every month 1 million se bhi zyada cars ki registrations mein decline aa raha hai. Aur yeh difference koi minor nahi hai, rather literally utni cars hai jitni Spain mein poore ek year ke during new registrations hoti hai. The CEO of Volkswagen pressure the EU Blume ne kaha ki Europe ke industrial base ko secure karna most important hai, because Europe mein existing business model ab kaafi pressure face kar raha hai. Yahan Blume essentially EU ko ek political message dene ki try kar rahe hai, jismein woh chahte hai ki European Union local manufacturers ke liye regulations ko or flexible or favourable banaye. Other than this, local manufacturing ko promote karne ke liye incentives par bhi focus kiya jaana chahiye. Industrial Acceleration Act or Made in Europe jaise initiatives isi direction mein role play karenge, jo Chinese manufacturers ko bhi Europe mein apni manufacturing facilities establish karne or local supply chain develop karne ke liye attract kar rahi hai. In an attempt to reduce the time needed for development On the other hand, Blume bhi acknowledge karte hai ki Europe ka future ab every individual manufacturer ke haath mein hai. Stellantis past one year se apne complete business or operations ko overhaul kar raha hai, same Volkswagen ne bhi restructuring process start kar diya hai, jiske chalte unfortunately Germany mein thousands of jobs cut ki jaayengi. Abb yeh companies pehle ki tarah China par depend nahi kar sakti hai, because wahan ka market ab utna reliable nahi raha jitna kuch years pehle hua karta tha. Other side, United States mein bhi business karna ab utna profitable nahi reh gaya hai, especially Porsche or BMW jaise brands ke liye, because tariffs ki wajah se unki profitability par pressure aa raha hai. Other than this, Trump administration ki unpredictable policies bhi situation ko or uncertain bana rahi hai, jisse European car manufacturers ke liye future planning karna or challenging ho gaya hai. Abhi bhi several questions hai jinka answer toh time ke saath hi pata chalega, jaise ki Chinese partners ke saath alliances se milne wale solutions ko kaise integrate karenge. For example, Xpeng ke saath inki 2023 mein partnership hui thi, or Gotion bhi hai, jiska Sagunto plant future mein group ke BEVs ke liye batteries produce karega. But biggest question is development time ko kaise reduce kiya jayega so that costs ko reduce ho sakein, without compromising on the quality of the final product. News Source: Motor.es