VW says that Jetta, its sub-brand in China, continues to be a well-received option for buyers in China seeking to own a car for the first time. In April, Jetta delivered 13,500 cars to customers.
From January to April, around 38,000 of the brand’s cars were sold.
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VW maintains that due to the impact of Covid-19, the desire for personal car ownership has been rising in China, with customers now more motivated than ever to avoid crowded public or shared transportation.
Since its market entry in September 2019, Jetta has been gaining momentum. Around 81,000 Jetta cars have been delivered to customers. In 2020, its first full year of sales, the brand will continue to boost Volkswagen Group China’s market share. Despite the enormous negative impact of the Covid-19 pandemic on China’s automotive market, Jetta’s results in the first four months of this year show only a downturn of 12% when compared to the four months from market entry in September to December 2019. So while the overall market decreased by 30 percent from January to April 2020, Jetta gained market share.
China’s vehicle density is three times lower than that of Germany, hence the space for growth in China, especially within the entry-level segment that alone represents a third of the total market. Among customers in this segment, around 80 percent are first time buyers, Jetta’s main target group. The brand’s customers are located in emerging cities.
Jetta’s successful start in the market has been further strengthened by the introduction of the brand’s VS7 SUV model launched in March. The model’s market launch was also presented to the world online, with the event attracting 10 million viewers. The VS7 completes the Jetta line-up of three cars that also features the VS5 SUV and the VA3 sedan.
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By GlobalDataThe Jetta brand closes the gap between the entry-level and the volume segment where the Volkswagen brand is positioned. For the first time in Volkswagen’s history, a single model has gone on to transform into a brand of its own, with its own proprietary model family. Jetta is positioned independently in the market, but with recognizable proximity to the world of Volkswagen, VW maintains. It says Jetta’s success is based on the Volkswagen DNA: quality, safety, value retention and a clear design language. All models are produced by FAW-Volkswagen in a state-of-the art factory in Chengdu, working closely with FAW-VW’s central hub in the city of Changchun.
