More VW luxury brands coming to China in 2011

• Source: Gasgoo
• [17:17 November 24 2010]
• Comments

Volkswagen Group, which is on track to meet its sales target of 40,000 imported cars for 2010 in China, has raised its sales outlook for 2011 to 60,000 units, Sou Weiming, vice president of Volkswagen Group China recently said in an interview with Beijing Youth Daily.

VW sold 1.6 million vehicles in China in the first 10 months and is set to complete its sales target of 2 millions for this year. Sou revealed, adding that the German automaker will introduce more of its luxury car brands to China and will certainly bring in the VW R-Series next year.

VW, Europe's largest carmaker, has spent a long time developing strategies to promote its upmarket brands in the Chinese market, including the Lamborghini that has maintained a very good sales momentum this year, as well as the Porsche which VW said it would buy for about 3.55 billion euros ($4.5 billion) starting in 2011.

Although the US is currently the largest luxury car market, the development opportunity in China will grow bigger and bigger. VW has to seize the chance to increase its presence, and if it misses the opportunities in either high-end, or luxury, or sports car market, it will be faced with greater challenges. At present, VW is developing strategies based on each of its luxury-brand's characteristics in terms of China operations, network construction and other aspects. These strategies will be announced next year, Mr Sou said.

Owing to a relatively lower market share in the southern part of China, VW and its two Chinese ventures launched last year a "Southern Strategy". After one-year effort, the automaker has increased its market share in the region to 15 percent from the previous 8 percent.