Shanghai Volkswagen to Launch New Sedan Below Passat for China
Shanghai Volkswagen is developing a new sedan positioned between the Lavida and Passat, targeting China's mid-market saloon segment with a launch expected in late 2012.
Shanghai Volkswagen is preparing a new saloon for the Chinese market, designed to fill the gap between the Lavida and the Passat in both size and price. The new model, developed by the joint venture between Volkswagen and Shanghai Automotive, is expected to reach showrooms towards the end of 2012.
The new sedan will be tailored specifically for Chinese buyers who want a step up from the Lavida but do not wish to stretch to a Passat. At present, the Lavida is Volkswagen’s main offering below the Passat in China, with prices topping out around 150,000 RMB. The forthcoming model will target the 150,000–200,000 RMB segment, a bracket that remains underserved in Volkswagen’s local line-up.
Model strategy for China’s saloon market
Volkswagen’s approach in China has long relied on joint ventures to tailor its global line-up for local tastes. While the Jetta name is familiar in Europe, and the Sagitar serves a similar role under FAW-Volkswagen, the Shanghai Volkswagen plant is developing a separate model to meet demand in this key segment. This strategy allows Volkswagen to address regional preferences and competition from rivals such as GM and Peugeot, both of whom have recently expanded their own saloon ranges for China.
The new sub-Passat sedan is expected to share some underpinnings with existing Volkswagen models but will be differentiated by its dimensions and features to suit Chinese buyers. While detailed specifications have not been released, the pricing and positioning indicate it will be larger and more upmarket than the Lavida, but more accessible than the Passat.
SantanaNF and further expansion
Shanghai Volkswagen is also working on the next generation of the Santana, referred to as the SantanaNF. This model is likely to be shown as a concept at the 2012 Beijing Auto Show, with a market launch planned for late 2012. The Santana has traditionally been a key entry in Volkswagen’s Chinese range, and the update is expected to modernise its appeal for private buyers and fleets alike.
- Lavida: Volkswagen’s current entry below the Passat, priced up to 150,000 RMB.
- New sub-Passat sedan: Targets 150,000–200,000 RMB, positioned above Lavida.
- Passat: Established mid-size saloon, priced above 200,000 RMB.
With the new sub-Passat sedan and the forthcoming SantanaNF, Shanghai Volkswagen is aiming to strengthen its hold on the Chinese saloon market. The strategy reflects the growing importance of China’s mid-market buyers and the need for a finely tiered model range to capture demand.
