CEO of Volkswagen China: openness and competition drives innovation and future

In the 1980s, at the early stage of reform and opening up, China’s auto market featured an imbalanced product structure: heavy vehicles outnumbered light vehicles and there were few sedans. The domestic sedan production in 1985 was less than 5,000 while the number of imported sedans reached 100,000.

In the 1990s, China's auto industry underwent a shift from a planned economic system to a market economic system, and carmakers were able to do R&D independently. Through the introduction of foreign technology and joint ventures, the product level was greatly improved. In the 21st century, after China’s entry into the WTO, China's auto market scale took shape. In particular, the technology of sedan production was greatly improved, and new models keep springing up.

In 2009, China surpassed the U.S. for the first time as the world's largest automobile producer and seller. Nowadays, China can independently produce all kinds of automobiles, be they heavy, medium, light, micro vehicles, passenger cars or sedans. Imported vehicles only account for 5% of the entire auto market. The automobile industry has become a pillar of China’s national economy. Having been in China for 25 years, Prof. Heizmann stands witness to China’s transformation from a kingdom of bicycles to a country of cars.

(Volkswagen Group and SAIC agreed on investment in Changsha plant on May 26, 2013. Photo provided by SAIC Volkswagen)