German automaker Volkswagen Ag, Europe’s largest, considers its biggest auto market – China – could still deliver a market share growth this year, aiming to continue its model line expansion into the world’s largest car market.
According to Volkswagen Group China Chief Executive Jochem Heizmann, “we expect to continue on this trajectory as we head toward year end and maintain a positive outlook for fourth quarter results in 2015.” The world’s largest automaker by sales after the first six months has been hit by a massive scandal stemming from its decision to cheat on diesel emissions tests in the US, with the dieselgate conundrum further lifted by the company’s admission that it had actually fitted up to 11 million autos with the illegal software designed to thwart the diesel emissions standards. Trying to contain the biggest crisis in its 78-year history, Volkswagen has recently announced through the voice of its new chief executive officer Matthias Mueller the decision to postpone or cut any non-strategic investments, while also planning to lower spending models, technology and production facilities at the core VW marquee by one billion euros a year through 2019.
Meanwhile, VW China has said it would still go about its plans to expand the product offer, which already offers a wide array of models from compact cars to sports utility vehicles and large saloons. The company said it was particularly positive about expansion into the tier 3, 4 and 5 cities, which have a rising middle class and very low rates of car purchasing.