Volkswagen Sees Upward Trend in China, Plans More Expansion
Charissa Echavez | | Apr 25, 2016 10:07 AM EDT |
(Photo : Getty Images) Volkswagen has invested $300 million in Gett.
German car manufacturer Volkswagen believes that its upward sales trend in China during the previous two quarters will continue to soar, adding that the company plans to invest more on the market, Jochem Heizmann, China chief, said.
Together with its joint venture partners, Volkswagen plans to commit a whopping 29 billion yuan ($4.49 billion) this year. The expansion will focus on sport utility vehicles (SUVs) and new energy vehicles (NEV) in the next few years, Heizmann said during a media event ahead of the Beijing auto show.
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Volkswagen's SUVs lagged in China with only a handful of models produced domestically. This is likely to change as the company plans to launch 10 locally made Volkswagen, Audi, and Skoda SUV models in the years to come.
"There is an SUV offensive on the way," Heizmann told reporters.
"It will begin this year with a B segment SUV," he added, refusing to disclose further specific details as to which of its partners will produce B segment models (small cars).
On the other hand, in terms of NEVs, Volkswagen anticipates that it will sell 2 million units across China in the next four years, consistent with the Chinese government's aim.
Volkswagen, whose sales in China plunged 3.4 percent in 2015 to 3.5 million cars, wants to build 15 new plug-in hybrids or electric cars over the next three to four years. Heizmann added that Volkswagen is enhancing its online connectivity development in its models, emphasizing that the plan may need to hire another 30,000 people by the end of the decade.
The group has also established a "future lab" in China to create a common ground for digitalization experts and encourage interaction among people with their cars. It is also Volkswagen's way to move on from its recent emissions scandal.
"In China, the future is on display now," Heizmann said. "VW is building a new world of mobility."
Tagsvolkswagen, Volkswagen scandal, Beijing auto show, automobile industry, car market
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