Volkswagen's China sales hit record in 2010

Volkswagen Group China on January 7 reported a strong performance in 2010 with 1,923,500 (2009: 1,400,000, up 37 percent) vehicles delivered to customers in mainland China and Hong Kong. Because of the positive outlook, the two joint ventures in China, Shanghai Volkswagen and FAW-Volkswagen, have already announced an additional investment program for sustainable growth.

Volkswagen Group China will invest €10.6 billion from 2011 to 2015 to maintain and reinforce its leading position in one of the key markets of the global car industry. “In 2010, growth in the Chinese automobile market has exceeded everyone's expectations", said Dr. Karl-Thomas Neumann, President and CEO of Volkswagen Group China. “Although the growth of the car market might cool down in 2011, we still expect a good performance in the next years.” The investment of Volkswagen Group represents the biggest automotive investment in China ever. The investment is for the expansion of production facilities and the development of new products.

Sales record for all VGC brands

Sales of the Volkswagen brand amounted to 1,513,570 (2009: 1,117,909, up 35 percent) including 43,613 imported vehicles. Audi delivered 227,938 vehicles to customers (2009: 158,941, up 43 percent) including 33,018 imported units. Skoda sold 180,515 (2009: 122,556, up 47 percent) cars. Bentley sold 901 cars in mainland China and Hong Kong, Lamborghini sold 247 cars in 2010.

“2010 has been a unique year for our company. The extraordinary growth in China presents us with a lot of challenges as well as opportunities”, said Neumann. “We were able to pick up the pace of 2009 and we will use the dynamics to build an even stronger foundation for a long-lasting position as the market leader in China.”

The outstanding result of the Volkswagen brand was strongly supported by new models like Phaeton, Touareg, Tiguan and Volkswagen CC as well as the strategy of Volkswagen to launch innovative and affordable models with fuel efficient technologies as TSI Engines and DSG Transmission. Exceptionally strong performed VW Golf with over 50,000 cars, same as VW Lavida with more than 240,000 and VW New Bora with over 160,000 sold models. To proceed on this successful path Volkswagen just launched New Polo and New Touran on Guangzhou Auto Show and is about to launch innovative technologies e.g. with the New Touareg Hybrid and two B-segment models in 2011.

"As the No.1 premium car brand in China (incl. Hong Kong), Audi broke in 2010 China’s premium car sales record with a volume over 200,000 cars. This year, Audi sold 194,920 locally produced cars in mainland China. New products such as the locally produced Q5 and the imported A5 and A3 enjoyed a strong demand and strengthened the sales momentum for Audi brand. Audi also celebrated this year the 1 million car sold. This illustrates the solid foundation of Audi on the Chinese market and demonstrates the potential for future growth," Volkswagen Group said.

Skoda Auto has achieved again a new sales record in 2010. In order to extend the Skoda customer base and to meet more individual customer needs, SVW and Skoda Auto have signed a license agreement for the local production of Skoda compact SUV YETI. The production is scheduled to begin in 2013.

Outlook for 2011

“Based on our solid performance and strong partnership with SAIC and FAW, we are well prepared for long-term sustainable growth”, said Dr. Neumann. “And we keep our promise of bringing the latest technologies to China. The first fleet of E-cars equipped with the VW logo will hit China’s roads in 2011. Volkswagen will further strengthen its position as a good corporate citizen and will become an important partner to promote a greener environment.”

In line with Strategy 2018, Volkswagen Group China will focus its efforts on customer satisfaction, quality, service and brand building. “With the coming electrification of our vehicle fleet, it is necessary to focus even more on our customers. In China, more and more people are interested in Volkswagen’s achievements in the green technology sector”, said Karl-Thomas Neumann, president and CEO of Volkswagen Group China.