China crucial as the top market for Czech brand

Volkswagen Group's Czech unit Skoda plans to start imports to China next year through two possible distribution channels, according to its management board member for sales and marketing Werner Eichhorn.

One way is through exclusive showrooms built by Volkswagen Group's imported vehicle sales division and another way may be through existing dealerships of joint venture Shanghai Volkswagen, he said.

Currently three Skoda models - the Fabia subcompact, the Octavia compact and the Superb mid-sized sedan - are produced at the joint venture between Volkswagen and Shanghai-based SAIC Motor Corp.

The country has already become the biggest market worldwide for the Czech brand only five years after it started local production in China.

Sales of the three models surpassed 200,000 units in the first 10 months this year in China, about a quarter of its global delivery of nearly 800,000 units in the period.

"Skoda has made a correct decision to come to China and we expect the passenger vehicle market here will grow to 20 million units in the next decade," he said.

To further tap the market potential, Skoda plans to begin imports to China, Eichhorn said, yet declined to reveal specifics on which models will be introduced.

According to previous Chinese media reports, the imported lineup of Skoda is likely to include the Yeti SUV before its planned production at the joint venture begins and wagon versions of the Superb and Octavia.

"Skoda is still in an early stage of its development in China, our next plans are to introduce more new models, enhance brand recognition and expand the sales and service network," Eichhorn said.

"We also expect to double production in China in the next few years," he said. "We will expand production capacity at our existing joint venture plants to meet doubling demand."

In an interview in July, Skoda Chairman Winfried Vahland said that the company expects to hike annual sales in China to 500,000 by 2016, up from 220,000 units last year.

In addition to its existing three locally built models, Vahland said Skoda will produce the Yeti SUV and the Rapid sedan in China next year. With a size between the Fabia and Octavia, the Rapid was specially developed for the Chinese market.

Eichhorn noted that the slowing auto market in China hasn't affected the company's expansion plans. "It would be amazing if the European market could have an increase of 7 percent such as China has," he said.

According to the China Association of Automobile Manufacturers, China's passenger vehicle sales increased about 6.9 percent in the first 10 months to about 12.6 million units.

Last month, president of Skoda China Gerrit Marx left the position only one year after his appointment, leading to speculation in the industry about a possible change in the brand's business in China.

Eichhorn reassured the press that a successor will be named soon.

hantianyang@chinadaily.com.cn