FAW-VW meets challenge of China's auto market with dynamic models, rich product lineup

Despite the headwinds China's automotive market is currently battling, FAW-Volkswagen has kept its momentum thanks to its rich lineup of products, efficient cooperation between partners, and sound sales and marketing system.

In October, the Sino-German joint venture delivered 180,600 vehicles under its Volkswagen and Audi brands in China, ranking it first by sales volume among passenger car makers in the country. That was the third month in a row it retained its sales dominance, according to the statistics.

Of the total delivered in October, 124,101 were Volkswagens, bringing the brand's total sales in the first 10 months of the year to 1.17 million units. The Magotan, the Sagitar, the Golf and the Jetta have long been segment-leading models, and the Next Generation Bora, the T-ROC and the Next Generation CC are now on track to become new growth drivers.

Among others, the T-ROC, which is FAW-Volkswagen's first ever SUV, saw its sales soar to more than 8,000 in October. Three months into the market, it is already a top three model by sales volume in its segment.

Dong Xiuhui, commercial vice-president of FAW-Volkswagen Automotive Co Ltd, said the achievements were the result of a combination of factors including the brand's focus on quality models, good relations between the parent companies of the joint venture, and its outstanding capabilities in sales and marketing.

"First, our models are competitive by themselves and Chinese customers have placed their trust in German products. Our cars may not look overly ostentatious, but they stand the test of time," Dong said.

He said the outstanding relations between the two parent companies had made FAW-Volkswagen very efficient in all aspects of its work, ranging from production to research and development.

"There is a very cordial and favorable atmosphere, and it is like one plus one makes more than two," he added.

Dong said the credit also went to the joint venture's marketing and sales team, which is known for its progressiveness and its spirit to take on challenges.

FAW-Volkswagen will not rest on its laurels, either, the company said. Building on its success, which is mainly the result of its sedans, the joint venture is launching an SUV campaign to create another pillar for its future growth. In the coming four to five years, SUVs are expected to have a more than a 50 percent share of China's passenger car market, said Martin Jahn, executive vice-president of FAW-Volkswagen Sales Co.

"We know China's younger generations are pretty much focused on SUVs, so we want to have an SUV strategy that caters to every customer group," Jahn said.

He said the automaker will launch five SUV products by 2020, covering all segments from small and compact cars to mid and large vehicles.

Already in the market is the compact T-ROC and the mid-sized TAYRON. Jahn said the T-ROC, the first Volkswagen-branded SUV from the joint venture, is a genuine German SUV for young people based on its deep insights into young consumers.

Compared with other models from the joint venture, the T-ROC sports a more dynamic and younger design language and stronger sense of technology, which is also the trend of future SUVs from FAW-Volkswagen.

In addition, the TAYRON, which was launched in October, has a more significant meaning for the carmaker.

"Unlike other SUVs, the TAYRON is specially designed for China," said Jahn, adding that the model's design, drivability and practical technologies made it one of the most competitive in its segment.

"As a new-generation product for China's high-end SUV segment, the TAYRON is a dream car that FAW-VW has created for the new middle class," Jahn said. He added that the model is more than a product. "The TAYRON not only extends the product lineup of the FAW-VW family, but serves as a foothold for the TAYRON family to make a comprehensive deployment in the high-end midsize SUV product matrix," Jahn said.