Market report: Volkswagen in China

On March 28th, 1937, ‘Gesellschaft zur Vorbereitung des Deutschen Volkswagens GmbH’ was founded in Germany, and later on Sep 16th, 1938, it is renamed ‘Wolkswagenwerk GmbH’. It is now one of the world’s largest international automobile companies and independently designs, produces ands sell automobiles throughout the world. Today, the Gernam company owns several world-renown car brands such as Audi, Skoda, Lamborghini, Bentley, Porsche, Bugatti, Seat, and Scania.

One of Volkswagen’s most successful vehicles, the Beetle, was economical, cheap, and fashionable. It helped the company surpass the once-revolutionary Ford Model T and topped in the world automobile industry. Thanks to the success of the Beetle, Volkswagen gained the resources necessary to create, purchase, and merge with new high-end brands such as Audi, Skoda, Bentley and Lamborghini. It is now undoubtedly the most powerful auto company in the world.

Volkswagen in Shanghai (上海)

Volkswagen entrance into China formally began in March 1985, when it established its first facility in Shanghai(上海). Shanghai Volkswagen is a jointly-owned enterprise, with China and Germany each holding half of the initial investment. It is now the biggest modern automobile production base in China. Under the two major brands, Volkswagen and Skoda, it now has ten series of products, covering markets of A0, A, B and SUV.  Despite its success, it also faces competition from other foreign automobile manufacturers. For example, Santana Motor, a Spanish car manufacturer, has experienced country-wide success since it entered the country nearly 30 years ago in 1984.

Volkswagen in Changchun (长春)

With the success of Shanghai Volkswagen, the company turned its eyes to northern China and founded FAW-Volkswagen in Changchun(长春) in the Jilin(吉林) Province. By August 2010, the company had a total of 20,248 employees in China. Volkswagen’s best selling products in the country include Jetta, Audi, Volkswagen CC and Golf. After the establishment of its facility in Changchun(长春), the company created another two branches in China: one in Chengdu(成都) and one in Foshan(佛山). In the year 2011, FAW-Volkswagen achieved a sales number of 1 million, and paid 34 billion yuan in taxes. Having been appointed the automobile manufacturing sponsor of the Beijing 2008 Olympic Games, it is now one of the most successful automobile enterprises in China.

Volkswagen: compared with GM and Toyota

The following is the result of a Chinese consumer survey rating Volkswagen, General Motors, and Toyota in several different categories:

 

From above, it is apparent that Volkswagen boasts the best overall reputation among Chinese consumers. Its diligence, grasp of opportunities, creativity and stress of enterprise culture all contributed to its success.

Daxue Consulting China Consultant in China

Sources:

Picture Source: Volkswagen China

 

Posted in 0. CORRECTED, Brands in China, China markets, China reports, Xiaomi and tagged , , , .

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