Volkswagen plans to more than triple its sales in south China by 2018 as a main driver for its strategy to double sales to 2 million units in the country by that time, its China chief said on Sunday.China will play a key role in VW’s bid to pass Toyota Motor Corp. as the world’s top-selling automaker by 2018.
VW, which competes with General Motors and others globally, is stepping up its presence in China, which is one of the largest markets in the world.
Although VW, Europe’s largest automaker and No. 3 globally, is a dominant player in north and east China with a market share of more than 20% in each region through its partnerships with SAIC Motor and FAW Group, it only has 12% of the market in the south.
South China, where Japan’s Toyota, Honda and Nissan all have manufacturing bases, is expected to contribute about a third of the country’s GDP, up from 30% in 2008, official data showed.
VW is the best-selling European automaker in Hong Kong with a 21% market share in the first 10 months of the year, just behind Toyota’s 22%, but VW executives said they are confident the company can become No. 1 in south China by 2010.
China has been a major bright spot this year amid a global industry downturn because of Beijing’s car sales incentives, including cuts in sales taxes for smaller cars, which have significantly bolstered automobile demand.
VW expects to sell about 1.4 million vehicles in mainland China and Hong Kong this year, up more than 35% from 2008.
To maintain its growth momentum in a market where GM and Ford also are speeding up expansion, VW in September unveiled a plan to invest €4b in China from 2009 to 2011 to expand its vehicle production capacity and strengthen its r&d.
It will roll out 20 new models in China from 2010 to 2012 VW executives said.
