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

Article by Christian A., 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]

If you liked the article, share on:

Topics: china, sales

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019