VW Plans More Cars for Chinese Tastes
[2009-01-09]
SHANGHAI -- Volkswagen, challenged by surging Japanese automakers in China, says it will continue to offer vehicles developed for Chinese tastes, such as the Lavida, launched in July.
Group vice president Xu Jian said that more cars designed especially for China are in the works.
"Of course we pay close attention to our competitors. We recognize what they have achieved," said Xu, who is responsible for VW's strategy and corporate development in China. "But up to now our performance shows we have done a good job this year." Xu was speaking on the sidelines of the China Automotive Industry Forum of Shanghai's China Europe International Business School on November 6.
"When you're number one it's more difficult to gain market share," he added.
VW has 12 percent of the Chinese car market, which puts it way ahead of all competitors. In the first nine months of this year, the group sold 750,408 passenger vehicles, according to J.D. Power and Associates. In second place, Toyota Motor Co. sold 410,880 passenger vehicles in the same period.
But Toyota's sales surged 31 percent in the period. Sales made by Honda Motor Co. have also been strong. In the first nine months they grew by 20 percent. If the trend continues, Honda will relegate GM to fourth place in the first quarter of next year. Nissan is now in sixth place, and over the same period sales of its vehicles grew by 15 percent year-on-year.
As a whole, China's car market grew by 10 percent, year-on-year, in the first nine months of 2008.
Cultural affinity may give the Japanese an edge when creating cars for China. But VW is now challenging this advantage. In summer this year it convened a "China aesthetics research project" headed by its new head of design for the country, the Briton Simon Loasby.
"Together with Simon we've done a lot of research to better understand our Chinese customers," said Xu. "This market is very important to us now, so we have to pay attention to it."
In July, VW launched its first ever car designed especially for the Chinese market, the Lavida. Sales of 8,763 units in September made the car the sixth best-seller in the compact segment for the month. Xu confirmed that more cars designed exclusively for China are in the pipeline, although he declined to give any details.
Foreigners have often described the Lavida as "Japanese-looking," although this may be because no recognizably "Chinese" vehicle styling yet exists. Xu rejected the idea that VW may be imitating its Asian competition.
"If we try to make Japanese cars, we will fail," he said. "Copying is not the answer."
He also denied that by making its cars more Chinese, VW will be making them any less German. "We have to integrate the needs of local customers with our global concepts," he said. "But at the same time we have to keep our German identity. This is the core of our brand."
Group vice president Xu Jian said that more cars designed especially for China are in the works.
"Of course we pay close attention to our competitors. We recognize what they have achieved," said Xu, who is responsible for VW's strategy and corporate development in China. "But up to now our performance shows we have done a good job this year." Xu was speaking on the sidelines of the China Automotive Industry Forum of Shanghai's China Europe International Business School on November 6.
"When you're number one it's more difficult to gain market share," he added.
VW has 12 percent of the Chinese car market, which puts it way ahead of all competitors. In the first nine months of this year, the group sold 750,408 passenger vehicles, according to J.D. Power and Associates. In second place, Toyota Motor Co. sold 410,880 passenger vehicles in the same period.
But Toyota's sales surged 31 percent in the period. Sales made by Honda Motor Co. have also been strong. In the first nine months they grew by 20 percent. If the trend continues, Honda will relegate GM to fourth place in the first quarter of next year. Nissan is now in sixth place, and over the same period sales of its vehicles grew by 15 percent year-on-year.
As a whole, China's car market grew by 10 percent, year-on-year, in the first nine months of 2008.
Cultural affinity may give the Japanese an edge when creating cars for China. But VW is now challenging this advantage. In summer this year it convened a "China aesthetics research project" headed by its new head of design for the country, the Briton Simon Loasby.
"Together with Simon we've done a lot of research to better understand our Chinese customers," said Xu. "This market is very important to us now, so we have to pay attention to it."
In July, VW launched its first ever car designed especially for the Chinese market, the Lavida. Sales of 8,763 units in September made the car the sixth best-seller in the compact segment for the month. Xu confirmed that more cars designed exclusively for China are in the pipeline, although he declined to give any details.
Foreigners have often described the Lavida as "Japanese-looking," although this may be because no recognizably "Chinese" vehicle styling yet exists. Xu rejected the idea that VW may be imitating its Asian competition.
"If we try to make Japanese cars, we will fail," he said. "Copying is not the answer."
He also denied that by making its cars more Chinese, VW will be making them any less German. "We have to integrate the needs of local customers with our global concepts," he said. "But at the same time we have to keep our German identity. This is the core of our brand."
Source: automotive news
Keywords:Car
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