These cheap e-cars have no place in Germany
Electric cars from China are gradually conquering Europe. In Germany, too, names like BYD or Nio can already be seen on the streets. But VW has to deal with completely different e-cars from China: its own.
Clear edge from VW: ID models from China illegal in Germany
Volkswagen prohibits its dealers in Germany and Europe the sale of certain models, above all the electric cars of the ID series. However, not all are excluded, only E-cars that VW has built in China for the local market. Since the second half of 2022, they have apparently increasingly found their way to Europe.
The so-called gray market imports are illegal from VW’s point of view. “These vehicles may not be bought or sold by you in the contractually authorized business with the Volkswagen brand, nor may they be adapted to the local market conditions with your help,” quoted this Handelsblatt from the letter from VW to authorized dealers.
Notice: The term “grey market” covers products that are offered outside of the manufacturer’s official distribution and sales channels. For dealers who get involved, the half-silk business can be profitable because the structures bypassed allow cheaper – and thus more attractive – prices for end customers. There is a competitive advantage over officially traded products.
According to Volkswagen, trading in imported ID models from China bypassing the group would be “conduct in violation of the contract”. The reasons for VW are obvious: the cheaper production costs in China allow one lower price for local customers. If the e-cars from China are offered cheaper in Germany, for example, VW will potentially make a loss.
VW customers suffer from e-car machinations
But the step can also backfire for customers: According to VW, the ID models produced in China are “due to their hardware and software configuration not eligible for approval in Europe”. This includes, for example, the software package adapted to Chinese customers, but above all the other loading standard. E-cars built for the Chinese market cannot easily be charged in Europe.
Even with e-cars that can be approved, customers have to accept changes:
According to the report, some gray market dealers also offer to convert the models so that they can be used in Europe. Because these conversions are not authorized, the e-cars have no chance of being approved for German roads. In the worst case, customers stand still with an e-car with which they can do absolutely nothing. The registration authorities have therefore informed VW about the problem.
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