CHINA TOPIX

11/21/2024 09:04:06 pm

Make CT Your Homepage

Volkswagen Upbeat About Sales in China

Volkswagen

(Photo : Getty Images) The extension given by Judge Breyer is almost up and Volkswagen claims that a trial is no longer needed for more than 600 lawsuits filed against the company regarding the diesel scandal.

German car manufacturer Volkswagen is optimistic that its sales in China will rise, keeping in line with the overall growth expected in the global auto industry.        

The head of Volkswagen China Business Jochem Heizmann told reporters in Beijing recently that despite the slowing economy, he still sees tremendous growth potential in the Chinese car market, according to Reuters.

Like Us on Facebook

"If we look to the general growth situation, it's still tremendous, big growth", Heizmann said.    

Heizmann sounded especially optimistic about China's lower tier cities, as he expects those territories to fuel Volkswagen's growth sooner or later.

"These are still cities with millions of inhabitants, but in a different development stage", Heizmann said while speaking about prospective growth in lower tier cities.

He said Volkswagen is fully committed to its existing business plan for China, wherein the company plans to invest more than 4 billion euros ($4.46 billion) annually for the coming years.

Heizmann, however, refused to comment on reports of Volkswagen's joint venture with JAC Motors to produce electric vehicles, stating that talks are still in early stage and there are no concrete plans as of now. 

Volkswagen's global sales have come under severe stress ever since it was hit by an emission scandal in the U.S. in September last year. Its annual sales in China fell by 3.4 percent in 2015. Allowing its U.S rival General Motors to overtake it and claim the coveted No 1 spot in the world's largest car market.

Volkswagen's sales in January, however, rebounded - offering much needed respite to the German car manufacturer.

Battered by the emission scandal and faced with other economic challenges, Volkswagen does not want to take the Chinese market for granted, as it provides regular staple of income to the German car maker.           

Real Time Analytics