Volkswagen Determined to Win Over SUV and NEV Markets in China
Yicai Global
/SOURCE : Yicai
Volkswagen Determined to Win Over SUV and NEV Markets in China

(Yicai Global) Dec. 1 -- Volkswagen has not yet gained a foothold in the booming sports-utility and new-energy vehicle markets in China, but is trying to make up ground now, top audit and accounting consultants Deloitte China reported.

"Between the time when Volkswagen recognized the strong demand for SUVs in China and the development of products, the decision-making process took a long time to complete. The demand for SUVs is not very strong in markets outside China, so it's actually difficult for the company to commit itself to developing a new model exclusively for the Chinese market," Liu Xing, auto industry analyst at Deloitte China, told a Yicai Global reporter.

However, Volkswagen views China as a very important market and eventually decided to produce an SUV aimed at the Chinese. Volkswagen released two new models during the recent Auto Guangzhou exhibition. One of them, the Teramont SUV will be produced by SAIC Volkswagen and the other, the medium-sized Kodiaq was developed in conjunction with Skoda.

"Given its brand influence, Volkswagen's new SUV models will soon make up lost ground," auto industry analyst Jia Xinguang said, however sales will ultimately depend on the pricing of the Teramont."

"Hopefully, SUV products represented by Kodiaq can contribute 50 percent of the total revenue at Skoda," said Michael Arndt, Skoda's Executive Director for sales and marketing, during a press conference.

On the new-energy vehicle NEV front, Volkswagen signed a memorandum with JAC Motors in September proposing to launch the joint development of cheap electric vehicles in the future. By 2020, Volkswagen will be selling 400,000 NEVs a year in China, according to Jochem Heizmann, the CEO of Volkswagen Group China.

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