VW Starts Sales Offensive In China

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

Volkswagen intends to significantly increase its own market share in China with a large-scale expansion of the dealer network. VW boss Martin Winterkorn also has India in his sights, which "could become a second China."

With a new sales offensive, Europe's largest car manufacturer Volkswagen wants to benefit more from the booming Chinese market. In order to expand their shares in what is now the most important foreign market, the Wolfsburg-based company is planning a large-scale expansion of the dealer network. Sales manager Christian Klingler announced in the "Handelsblatt" that the number of dealers in China would double to around 2,600. In addition, 80,000 more sales employees are to be added - also doubling the workforce. China is seen as a growth driver in the car and truck business.

Service could be improved

Klingler admitted that customer service could still be improved. According to the newspaper, VW chief supervisor Ferdinand Piëch expressed criticism of car sales in China at the Paris Motor Show. The expansion of the dealer network is intended to provide closer support.

When it comes to car sales in China, VW leaders are convinced that there is still a lot of room for improvement. The group subsidiary Audi had sold 22,400 vehicles there in August alone - an increase of more than two thirds compared to the same month last year. Volkswagen sees further potential in the commercial vehicle business. The Amarok pick-up model, which was previously manufactured in Argentina, should also become more interesting for Chinese customers in the future. In the segment between 2.8 and 7 tons, the group is also examining the market opportunities for a small truck.

The competitor BMW also sees great opportunities in the Chinese market. “It is quite possible that China will become the largest sales market for the BMW Group by 2020,” said CEO Norbert Reithofer of the French daily “Le Figaro”. In the first eight months of this year, the company with the brands BMW, Mini and Rolls-Royce sold around 90 percent more cars there than in the same period last year. The growth potential is enormous.

High goals in India

VW wants to grow at a similar rate in India. By the year 2018, in which the Wolfsburg-based Toyota want to replace Toyota at the top of the global car manufacturer, CEO Martin Winterkorn has set a target of one million cars sold per year. According to the current forecast, this would correspond to a market share of the VW brands of 20 percent. He added: "India can become a second China for us," said Winterkorn.

So far, however, the group in India is still a long way from achieving such ambitious goals. According to the report, the Wolfsburg-based company with its Volkswagen, Audi and Skoda brands sold a total of 26,000 cars in India in the first eight months of this year. This corresponds to a sales increase of 125 percent compared to the same period of the previous year. However, VW's market share there has so far been a manageable two percent. (dpa / mid)