VW boss compares China market to a 'fitness centre'

WOLFSBURG: Volkswagen CEO Oliver Blume said he views China as "a kind of fitness centre" in terms of economic development.

"Innovations, for example in batteries, software or autonomous driving, are being developed here pragmatically and cost-efficiently, with a high level of creativity and immense speed," Blume told the German weekly Die Zeit, in comments released in advance.

He said such expertise and this attitude could be used to transfer innovation to the entire company, particularly in Germany, where sales are lagging compared to the past.

Blume denied that the European automotive market needed to be protected from Chinese imports solely through tariffs.

"The overall aim should be to organize tariffs intelligently," he said, adding they could be linked to investment incentives.

Last year, VW sales fell due to sluggish business in China, with sales in that country down nearly 10%. VW still leads the market for combustion engines with a market share of more than 20%.

But local challenger BYD has long since overtaken the booming electric car market in China.

"A competitive automotive industry has developed in China in a short space of time. For us, this is now a kind of fitness centre," said Blume.