Volkswagen poised to dominate Chinese car market in 2013

Article by Anita Panait, on December 22, 2012

Volkswagen is looking to become a dominant force in China’s car market in 2013, as it has been trying to prove this year. While VW’s feat may be linked to the current boycott of Japanese products like vehicles in China that started in September 2012, the truth is, the German carmaker has been doing a good job luring consumers away from Toyota, Honda and Nissan in the mid-sized car market.

VW’s sales secret is lodged within its advanced powertrain technology, including turbocharged direct injection engines and dual-clutch gearboxes. In fact, Volkswagen brand sales in China surged 31 percent in November 2012, while sales of Toyota, Honda and Nissan in the country dropped around 30 percent in the month.

Although Japanese carmakers are expected to recover gradually as anti-Japan sentiment in China recedes, Volkswagen is exerting its best efforts to dominate the Chinese car market in 2013. VW is making heavy investments to introduce new models, construct new assembly lines and open new dealerships.

VW’s group sales in China are expected to be at 270,000 units in November, just around 10,000 vehicles ahead of current market leader General Motors, which delivered around 260,000 units. For the January-November 2012 period, GM's joint ventures sold 2.59 million units in China, while VW Group sold 2.53 million units. While it seems that GM sold a little more than VW in China, over a million of the US carmaker’s sales have been low-margin Wuling microvans.

China's car market is headed for a stable growth in 2013, following four years of volatile swings. Typically, China's car market grows faster than its economy. However, the pattern was upset in 2008, as global economic worries caused Chinese buyers to become spendthrift. The pattern was poised to resume this year, as passenger vehicle sales increased over 10 percent in April-August 2012. But it was disrupted again when a territorial dispute between China and Japan broke out in September, leading Chinese car buyers to boycott Japanese vehicles.

Topics: vw, china

If you liked the article, share on:

Comments

Recommended

An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 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