Volkswagen’s Czech division plans to strengthen its presence in China and to double the sale volume, by investing another 2 billion euros in its biggest single market.
The Czech automaker is relying on China to keep its sales figures as high as possible, as the world’s biggest auto market is also Skoda’s largest one. Therefore, to keep the good momentum in the near future, the company plans to invest further 2 billion euros (2.26 billion dollars) in the country for expanding the model lineup and to bring in more high-tech technologies. Skoda is making this commitment in cooperation with Volkswagen’s local partner, the state-owned SAIC Motor, signing a memorandum of understanding in this direction during the state visit of the Chinese President in the Czech Republic.
“Since entering the market nine years ago, Skoda has made some very positive developments on the Chinese auto market, which has since become our largest single market,” CEO Bernhard Maier said. “Our aim is to double deliveries in China by 2020,” he added.
The brand said it was currently preparing a comprehensive SUV campaign for the Chinese market with its partner, as the VisionS concept will be showcased to the local public for the first time at the end of April at the automotive show in Beijing. The VisionS provides a glimpse of the new large Skoda SUV whose launch in China is planned for the first half 2017. As part of the SUV strategy, another body variant of the model is already in development, it revealed in a statement. In addition, the brand intends to bring out a crossover utility vehicle (CUV) for China as well.
Skoda relaunched vehicle production in China in mid-2007 and sold 281,700 vehicles in 2015, a figure accounting for around a quarter of the brand’s total sales. China has been the most important single market worldwide for the company since 2010.