According to representatives of Volkswagen Group, in the group studying the scaling options Chinese brand Jetta, which manufactures cars in budget segment. Discusses the possibility of going beyond the Chinese market, which is now the largest in the world.
Eight months after its inception Jetta won about 1 % of China’s market: young shoppers, the decisive factor for which is the cost of a vehicle, buy a car to avoid public transport after the outbreak of the coronavirus. This information this week give the President of the brand, Harald Muller (Harald Mueller).
“The successful launch of the brand, of course, has sparked interest from other markets in which Volkswagen presented,” said Mueller.
VW for many years he labored for the development of no-frills vehicles for emerging markets because of high technological costs have hampered the production of competitively priced cars in the budget segment (represented, for example, by brand Renault Dacia). Ultimately, the company chose to work in two directions: used Volkswagen Jetta sedan (which is popular in Europe and USA for decades) to create the brand’s largest market in China, while sister brand Skoda has focused on India.
In the Chinese budget segment is dominated by local manufacturers (like Great Wall and Geely) and other Asian brands. It accounts for about 30 % of the total market in the country. According to VW, 80% of customers in this segment in China are buying a car for the first time.
The current Jetta model range consists of two crossovers (VS5 and VS7, turned counterparts SEAT Ateca and Tarraco, respectively – InfoCar) and one sedan (VA3, built on shared with the Skoda Rapid and SEAT Toledo Mk4 platform – InfoCar) producing joint venture of VW and FAW in Chengdu.
In total, the Volkswagen group covers about 20 % of the total market of China.