New car prices in China expected to fall by 20 percent from today’s levels

Article by Christian Andrei, on November 9, 2010

The price of new cars in China continues to drop and by 2020, it’s expected that it would have decreased by 20% compared to current levels, according to Volkswagen AG's former China CEO Winfried Vahland.

The most crucial factors for the pricing decline in China include intense competition, low disposable income, and relatively low production costs.

Vahland explained that since the quality of Western cars is higher, they’re justified to sell at higher prices. But as Chinese brands are fast catching up with offering better quality, Vahland said that they’re not expected to sell at low prices and that the “price pressure won't lessen."

Vahland made these comments last Nov. 2 at the Automobilwoche industry conference in Berlin. Automobilwoche is a sister publication of Automotive News China. The cheapest cars in China are priced at about 3,000 euros, and the average price is nearly 10,000 euros.

But in Europe, cars are priced at an average of 16,000 euros. Before Vahland was named as CEO of Volkswagen's Skoda brand on Sept. 1, he spent five years as head of VW's China operations.

According to industry watchers, VW's board was glad upon seeing Vahland succeed in reversing VW's losses and narrowing market share in China. Insiders claim further that this Skoda appointment is tantamount to Vahland being considered as a potential successor to VW CEO Martin Winterkorn. [via autonews - sub. required]

Topics: china, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries