VW keen to remain market leader
24/4/2003 15:28
Despite falling market share in China's automobile sector, German
automobile manufacturer Volkswagen AG is keen to remain a leader in the local
market, Dr. Bernd Leissner, President of Volkswagen Asia Pacific,
said.
Dr. Leissner is in Shanghai attending Auto Shanghai 2003, the
largest-ever auto show, which is ending three days ahead of schedule today, as
the local government tries to block the spread of SARS in the city.
The
president didn't give specifics of the drop in market share, but attributed it
to the fast growing market in China.
He said VW reported a 86.7-percent
jump in sales in China during the first quarter over the same period last year
to 162,034, and expected sales for the whole year to top 6 million.
VW
sold 513,000 vehicles last year in China, more than seven times the volume in
Japan in the same year.
Despite soaring sales, Dr. Leissner said the
company would find it hard to maintain its 50-percent share in China's auto
market, which continues to expand.
To ensure its dominance in the local
market, VW plans to make a 600-million-euro (US$545 million) investment each
year starting this year in its Chinese plants, as well as introduce more new
models here, he noted.
Five new models will be introduced this
year.
In addition to Gol sedan, launched last month by its Shanghai joint
venture Shanghai Volkswagen Automobile Co. Ltd., VW will begin producing the
Golf sedan at its other Chinese joint venture in Changchun, northeastern China,
in the second half of this year.
Other new models include a new version
of the Polo car and a Touran compact sports utility van, both at SVW.
VW
is considering a rollout of diesel-fueled sedans in China to fill the gap in the
local market, according to today's Beijing Youth Daily.
It said the
company has prepared the new launch for four years and is waiting for a good
time to roll out the diesel products.
Analysts estimate that China's
diesel auto market will reach 4.4 million in 2020, out of a total yearly auto
market of 11 million.
They also pointed out that more than 40 percent of
cars in Europe are diesel vehicles.
Jane Chen / Shanghai Daily news
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