Volkswagen sales in China fall 14% in 2021 amid chip shortage

By Ovunc Kutlu

ANKARA (AA) - German carmaker Volkswagen saw its vehicle sales in China decline 14% in 2021 due to global chip shortage, according to an official on Tuesday.

Volkswagen sold approximately 3.3 million vehicles in China last year, Volkswagen Group China CEO Stephan Wollenstein said in a presentation.

The company aims to increase sales in China, the world's largest auto market, by 15% this year if supply conditions improve, he added.

Volkswagen has recently shut down its vehicle manufacturing facility in Tianjin, located in northern China, due to the omicron variant outbreak.

The coronavirus pandemic has negatively impacted global supply chains and led to a semiconductor crisis around the world, which are expected to continue putting pressure on supply in the medium term.

The semiconductor shortage crisis affects a total of 169 industries in one way or another, according to US multinational investment bank and financial services company Goldman Sachs.