The Volkswagen brand said it would strengthen its leading position in China with a stepped up major model and innovation offensive.
The first step is the launch of the redesigned Touareg which made its world debut at an SUV Brand Day in Beijing. By 2020, at least 12 further SUV models for China will follow. The brand has also begun a nationwide communications campaign called Move Forward intended to further strengthen it.
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"China is crucially important for Volkswagen. There is no other region where the brand sells more vehicles. Last year, it delivered 3.2m vehicles in China, reaching a market share of more than 13%, the brand said in a statement.
"This makes VW a clear market leader in the world's largest and most important automobile market."
Under its Transform 2025+ strategy, the brand intends to renew and expanded its entire model line by 2020. This year, nine new models will be launched.
"China will have a decisive effect on the success of our future strategy. We will orient our product range even more closely to the wishes and expectations of Chinese customers. More than ever before, Volkswagen will stand for safety, quality and innovation. Together with our partners at SAIC and FAW, we will underscore [our] pioneering role in China," said brand CEO Herbert Diess
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By GlobalData10 more SUVs by 2020
Current market forecasts indicate that every second new car in China could soon be an SUV. With the Tiguan and the Teramont, the brand already offers two bestsellers. In 2017, it delivered about 400,000 SUVs.
Over the next three years, at least 10 more SUVs are to be launched, including four this year. The new Touareg is first. The flagship SUV proves the technical performance capabilities of the brand – including features such as a fully digital Innovision Cockpit which is not available on any other luxury SUV in this form.
E-mobility is another main focus of the model offensive. This year, VW is launching a plug-in hybrid version of the Tiguan and a full electric variant of the new Bora. The full electric, fully networked ID family, based on the modular electrification toolkit (MEB), is being launched in China from 2020. The ID will make its debut at almost the same time in Europe, China and the US.
Move Forward brand campaign
Under Move Forward, the brand will provide comprehensive information on products, technologies and future plans in China. The SUV Brand Day marks the start of a wide variety of communications and marketing activities ranging from innovative events to social media campaigns.
Volkswagen China history
VW has a long history in China since entering over 30 years ago. The first vehicle entirely produced in China, a Santana, rolled off the production line in Shanghai in 1985. Since then, together with its joint venture partners SAIC and FAW, the brand has sold 27m vehicles in China and made a significant contribution to the rapid pace of development in the Chinese automotive industry.
Nowadays, Volkswagen has 19 production locations throughout the country including nine vehicle and 10 components plants employing 85,000 people . The product range is 20 models, many developed especially for China, such as the Teramont, the Phideon and Lamando. In addition to production, VW is also strengthening development in China, especially in future-oriented areas such as e-mobility and digitalisation.
Responsibilities previously held centrally in Wolfsburg are increasingly being transferred by the brand so that the regions can act autonomously. The regions will then be responsible for the entire range of business, including decisions on the model line.
