VW in China: Strengthening SUV lineup

Launch "budget car" series in 2018



The all-new Tiguan at the Frankfurt Auto Show 2015

 Following our "VW Group: Global sales falling from April 2015" issued on September 15, 2015, this report specifies the Volkswagen (VW) Group's efforts in its largest market of China and in the U.S. VWaims to achieve Group sales of one million vehicles and the VW brand's sales of 800,000 units by 2018.

 Since April 2015, the industry-wide monthly sales in China have registered year-on-year (y/y) drops: 7.1% in July and 3.0% in August. The VW Group also posted y/y sales declines, and is reconsidering its plan to build up the annual manufacturing capacity of five million vehicles in China by 2019.

 The VW Group's market share in China is also falling. Demands by model indicate that lack of multi-purpose vehicles (MPVs) and sports-utility vehicles (SUVs) is one of the causes for stagnant sales. The OEM plans to develop a series of low cost budget cars consisting of an SUV, sedan and hatchback and to launch them in China by 2018, possibly in other emerging markets as well.

Related reports:
VW Group: Global sales falling from April 2015 (Sep. 2015)
Sales in China drop to 1.5% growth in first half of 2015 (Aug. 2015)