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FAW-VW may introduce Seat to Chinese mainland

  • Source: Global Times
  • [16:37 May 13 2010]
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According to Chinese media, one of Volkswagen's Chinese joint ventures, FAW-VW, plans to introduce VW's wholly owned subsidiary, Seat, into southern China, after the JV's new plant completes construction in two years, in line with the world-known auto titan's preliminary development strategy in the country.

Citing anonymous sources inside FAW, Chinese media reported that VW has verified the feasibility of selling Seat models in China and did consumer survey in southern China with some of the Spanish automaker's cars.

The president of Volkswagen Group China, Winfried Vahland, who is about to step down from his post still this year (according to Chinese media but pending confirmation from VW) confirmed to the Chinese media in 2008 that Seat would enter the Chinese market. The ex-chairman of Seat, Erich Schmitt, made it clear that, to reach its sales target, the company intends to enter the Chinese auto market starting first, in coastal cities.

Young buyers in south China tend to give preference to the youthful, modern car brands. In addition, FAW-VW has not yet landed firmly in the compact vehicle market, which keeps a fast growth, so its eyes are directed at the Seat, a kind of smaller car brand.

Three years ago, in an attempt to contend with the 'ever well-performing' Toyota Motors, the Volkswagen decided to carry out its compact family from 2011. Economic conditions were the obstacles impeding the company to enter the Chinese mainland in 2009.

Seat sold 88,300 vehicles in the first quarter of 2010, up 15.1 percent from a year earlier. Its Ibiza was the most successful model with quarterly sales of 46,200 units.

Agencies and Shi Jierui contributed to this story