“China’s premium car market will maintain a growth rate of around 30% in 2011, while its entire automotive market will enjoy a lower growth rate,” Zhang Xiaojun, executive vice-president of the FAW-VW Audi sales division said.
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According to auto.ynet.com, FAW-VW, a passenger car joint venture between First Automobile Works (FAW) and Volkswagen, has launched the new Audi TT and TTS models in the domestic market in the wake of the A3 as competition in the high-end vehicle segment has become extremely fierce.
Audi-VW’s luxury car unit currently has a very tight production capacity worldwide, and can barely meet market demand even though the import policies for autos tilt towards the Chinese market and its Changchun plant is already running at full capacity. Maintaining an optimistic outlook for the country’s premium car market, FAW-VW has set a sales target of 1m units for the next three years. However, given the current situation, FAW-VW has to gear up to rapidly expand capacity, Zhang said.
“FAW-VW will certainly expand capacity,” he added without revealing any specific plans. But he said the company will import all Audi models into China by 2015 and will need to put more models into local production if it expects to achieve the 1m sales target in three years.
He said that localisation of the whole value chain (from product R&D, part procurement to manufacturing and marketing) helps to lower product costs and is also an effective way to boost sales.
