VW Reports Russia Sales in 2012 Up 40% image

VW reported 2012 sales up 40% to 164,702 vehicles in Russia.

The VW Group, including the Audi, Skoda and Seat brands, announced this week that its sales in Russia were up 39% last year to 317,700 vehicles. BY 2018 VW will invest 1 billion euro in Russia, where the automaker plans an aggressive expansion. The company will initially build a new engine facility in Kaluga, located at almost 150 km southwest of Moscow, where VW already has a production plant.

Recently VW announced it will launch a new global budget car brand, as demand for affordable vehicles in countries such as China, Russia and India continues to increase. This new brand will help the German automaker compete with Lada in Russia, Geely in China and Maruti Suzuki in India.

The new models will include a four door family sedan ($9,200), an estate ($9,800) and an MPV ($10,500) and will be based on the PQ model and manufactured in low labor countries. Sales of budget cars in these countries has always been impressive, accounting for 48% of total sales in India, 33% in China and 48% in Russia. Creating a new car brand will help VW boost sales and possibly reach its target of becoming the world’s biggest automaker by 2018.