2011 was the year when Volkswagen AG set a new record in China. The German automaker sold 2.26 million vehicles, ed 17.7 percent more compared to 2010.
The company intends on keeping the 20% market share over the next 8 years in China. For this VW will launch a new car brand.
“We have agreed with both our joint ventures, doctor FAW and Shanghai Volkswagen , to develop a new brand. A low-range brand would best suit Chinese consumers, who are among the world’s most price-sensitive,” said CEO Martin Winterkorn.
Shanghai VW and FAW-VW, the two Chiense joint ventures, have announced a bold plan for the years to come, with a both JVs planning to invest 14 billion euros ($18.41b) by 2016.
The money will be used to built more eco-friendly factories in the country and to introduce more ‘green’ models, as the government vehicle registration caps aims at reducing congestion and pollution in the country’s biggest cities.
The company has already a solid position in China after selling 2.26 million new cars in 2011. That is why it is believed that the company’s strategy for increasing its sales in China will meet great success.