Volkswagen AG’s sales in China this year are expected to reach over 2 million vehicles, making it VW's largest global market again (starting in 2009). From January to July 2011, Volkswagen Group sold 1.3 million units, higher by 16% compared to the same period last year. If VW achieves its sales goal for the year, it means that its 2011 deliveries would increase by 4.2%.
This would be about the same pace as China’s industry sales but would be flat if compared to VW’s growth rate last year (a 37% rise from the previous year with sales of 1.9 million vehicles).
This year, industry sales had flattened after a scrapping incentive was terminated and the sales tax on small cars was raised. The Volkswagen brand is the best-selling marque in China.
However, VW is in a tight sales race with General Motors Co. If sales of microvans are included, sales of GM's Chinese joint ventures reached 1.3 million units from January to June of this year, while VW Group sold 1.1 million units.
CEO Martin Winterkorn disclosed VW’s sales target in a statement that was released during a trip to China when he came to celebrate the 20th anniversary of FAW-Volkswagen Automobile Co., the German automaker’s joint venture with China FAW Group Corp.
FAW-Volkswgen builds Audi-brand vehicles and Volkswagen-brand models like the Golf, Jetta, Sargita, New Bora, Magotan and CC. VW's Skoda models are made by its joint venture with SAIC Motor Corp.