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Volkswagen thinking of smaller car models for Chinese market

A lot of reports going around the autoworld is that VW is coming up with its elevent brand. And that brand will be supplying the needs for small cars in the People’s Republic of China.

The production of the new VW vehicles will cater the needs of the Chinese consumers specifically those who are living outside the mega cities of China like Shanghai and Beijing. This demographic segment is starting to grow in number and starting to look for their reasonable means of transport.

Like other foreign car manufacturers who entered the market of China, Volkswagen sells their cars under the VW brand. This next move though involves an agreement to have Chinese partners as required by the local law. The government of China is also foreseeing a growth in the share of the local car brands to about 30% through 40% in 4 years time. VW will be developing a unique sub-brand or brand in cooperation with the Chinese partners to make and sell smaller vehicles.

VW sees the partnership to build a local brand in China as a big opportunity since they are still on the stage of penetrating the new segments of the market.

Volkswagen though is playing catch up to other car manufacturers like General Motors and Honda who have already started development of local car brands with their Chinese counterparts. Honda and local car manufacturer Guangzhou Automobile Group will be launching their Everus brand and their first S1 model this year. GM and partners from Shanghai will have the Baojun that will roll out the Buick Excelle dervied 630 model later this year.

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