Skoda to achieve 20% of Shanghai VW sales this year

Shanghai, April 20 (Gasgoo.com) Volkswagen AG's Czech brand Skoda expects to account for 20% of the overall sales this year of Shanghai VW, a joint venture between Volkswagen and SAIC, China Daily reported, citing a sales executive of the venture.

The Czech brand Skoda will play a bigger role in sales growth at its parent's partnership in China with SAIC Motor. Skoda's China sales in the first quarter surged 112% from a year earlier to 42,707 cars. Overall first-quarter sales of Shanghai Volkswagen grew by 57.4% to 211,191 units.

The Skoda brand contributed 16% of all car sales by Shanghai VW in 2009 and the contribution rate will likely reach 20%, based on its brisk sales, said Zhang Hailiang, executive director for sales and marketing at the joint venture. "In the long term, the rate will rise to 30%."

Shanghai VW, a major carmaker in China, recently launched a revamped Skoda Octavia Mingrui compact sedan in the eastern city of Suzhou. The JV also makes the Skoda Superb Haorui mid-sized sedan and Fabia Jingrui subcompact, among other Volkswagen models.

Analysts predict that Skoda could sell 200,000 units this year in China, up from 123,000 sold in 2009, if current momentum continues. Shanghai VW will expand the Skoda dealer network to 300 outlets by the end of this year from 247 in 2009, Zhang said.