Volkswagen will unveil its new top-end car model later this week. The model has been developed exclusively for the Chinese market. The new car called Phideon has the trappings of a luxury car. Volkswagen is looking to capitalize on the latest trend of subdued luxury in the Chinese economy.

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Phideon was displayed by the company at a media event in Shanghai. It was placed alongside luxury cars such as Audi's A6 sedan, Daimler's Mercedes-Benz E-Class, and BMW 5 Series.

Holger Santel, vice president of sales for SAIC Volkswagen, said that consumers are now shying away from flashy cars and do not want to show off.

Volkswagen has ruled Shanghai's taxi market for quite some time. With Phideon, the company is looking to capitalize on quality rather than quantity. It does not plan to offer any discounts to push sales volumes. This is the second flagship sedan model for Volkswagen. Earlier it had put Phaeton on the market. However, the model failed to meet its sales targets and was discontinued earlier this year.

Phideon is priced at nearly $53,273, making it a little more expensive than Ford's Taurus. The car comes with a 2.0-litre TSI unit, while its premium version is equipped with a V6 petrol engine of 295hp. Phideon is developed for the Chinese market. However, the company said that it is not averse to the idea of exporting the cars to other regions. 

Tagsvolkswagen, BMW, Mercedes