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German automakers in high gear in China
Sales of German carmakers are on the fast track in China, the world’s second largest and fast growing vehicle market.
Volkswagen Group’s China sales grew by 24.6 percent year-on-year to 431,369 units in the first half of this year, consolidating its two-decade leadership in the country’s passenger car sector.
The vehicles sold include 379,705 units under the Volkswagen badge, 49,267 Audi cars and 2,274 units from its Czech arm Skoda.
Winfried Vahland, Volkswagen’s China chief, said the company expects to sell more than 800,000 vehicles this year in China, up from 711,298 units in 2006.
However, Vahland warned that interest rate and fuel price hikes in China are likely to have a negative impact on the market.
Premium carmaker BMW’s January-to-June sales surged by 38 percent to 23,167 vehicles in the Chinese mainland, including 15,165 locally made 3 and 5 Series sedans.
Christoph Stark, CEO of BMW’s China operations, predicted his company’s sales in the mainland for the whole year will likely match first-half figures, provided there are no negative forces in the market.
Last year, BMW sold 36,357 vehicles to the Chinese mainland.
Mercedes-Benz, another premium brand, sold 13,500 cars in the Chinese mainland and the Hong Kong and Macao special administrative regions in the first six months of 2007, an increase of 28 percent.
Meanwhile, sales of its flagship S-Class rocketed by 50 percent to more than 5,000 units in the mainland.
However, Mercedes-Be nz has not provided a full-year sales forecast.
All three German carmakers are also introducing new models in China to woo buyers.
Volkswagen, which started production in China in the mid- 1980s, had earlier announced a plan to launch 12 to 14 new products in the country between 2005 and 2009.
The group’s tie-up with First Automotive Works Corp last month put a 1.8-liter turbo Magotan middle-range sedan on the Chinese market.
The partnership project in the northeastern city of Changchun is also manufacturing Volkswagen’s Jetta, Bora, Sagitar, Caddy and Golf, as well as the Audi A6 and A4.
Volkswagen also runs a joint venture with another Chinese carmaker, SAIC Motor Co, producing Volkswagen Santana, Passat, Polo, Gol and Touran, and Skoda Octavia. The Octavia was launched in June.
The two Volkswagen ventures now have a combined annual production capacity of more than 900,000 units.
Mercedes-Benz will launch the C-Class sedans at its parent DaimlerChrysler’s venture with Beijing Automotive Industry Corp at the end of this year.
The venture, formed in 2005, assembles the Mercedes E-Class sedans and Chrysler cars. Earlier this month, it launched a 2.5-liter E-Class sedan.
BMW, which kicked off local production in 2003, is considering building a second plant in China to expand production capacity.
It now has a venture with Brilliance China Auto to assemble the 3 and 5 Series sedans in northeastern city of Shenyang, with an annual production capacity of 41,000 units.
Sales of all China-made vehicles rose by 23.3 percent to 4.37 million units during the first half of this year due to strong demand from local buyers, according to data from China Association of Automobile Manufacturers.
Sales of passenger cars - sedans, sports utility vehicles and multi-purpose vehicles - hit 3.08 million units in the same period, up 22.3 percent.
Full-year total vehicle sales in 2007 are forecast to reach 8.5 million units, including 5 million passenger cars.
Volkswagen also plans to produce its latest engines and gearboxes in China to equip its locally made cars, in an effort to cut emission rates by more than 20 percent by 2010, in comparison with 2006 figures.
The plan will cost the carmaker $600 million.
BMW has implemented a slew of market initiatives since 2004 to build a better brand image in China, such as price cuts and donations to educational, environmental protection and cultural programs.
Volkswagen Group’s China sales grew by 24.6 percent year-on-year to 431,369 units in the first half of this year, consolidating its two-decade leadership in the country’s passenger car sector.
The vehicles sold include 379,705 units under the Volkswagen badge, 49,267 Audi cars and 2,274 units from its Czech arm Skoda.
Winfried Vahland, Volkswagen’s China chief, said the company expects to sell more than 800,000 vehicles this year in China, up from 711,298 units in 2006.
However, Vahland warned that interest rate and fuel price hikes in China are likely to have a negative impact on the market.
Premium carmaker BMW’s January-to-June sales surged by 38 percent to 23,167 vehicles in the Chinese mainland, including 15,165 locally made 3 and 5 Series sedans.
Christoph Stark, CEO of BMW’s China operations, predicted his company’s sales in the mainland for the whole year will likely match first-half figures, provided there are no negative forces in the market.
Last year, BMW sold 36,357 vehicles to the Chinese mainland.
Mercedes-Benz, another premium brand, sold 13,500 cars in the Chinese mainland and the Hong Kong and Macao special administrative regions in the first six months of 2007, an increase of 28 percent.
Meanwhile, sales of its flagship S-Class rocketed by 50 percent to more than 5,000 units in the mainland.
However, Mercedes-Be nz has not provided a full-year sales forecast.
All three German carmakers are also introducing new models in China to woo buyers.
Volkswagen, which started production in China in the mid- 1980s, had earlier announced a plan to launch 12 to 14 new products in the country between 2005 and 2009.
The group’s tie-up with First Automotive Works Corp last month put a 1.8-liter turbo Magotan middle-range sedan on the Chinese market.
The partnership project in the northeastern city of Changchun is also manufacturing Volkswagen’s Jetta, Bora, Sagitar, Caddy and Golf, as well as the Audi A6 and A4.
Volkswagen also runs a joint venture with another Chinese carmaker, SAIC Motor Co, producing Volkswagen Santana, Passat, Polo, Gol and Touran, and Skoda Octavia. The Octavia was launched in June.
The two Volkswagen ventures now have a combined annual production capacity of more than 900,000 units.
Mercedes-Benz will launch the C-Class sedans at its parent DaimlerChrysler’s venture with Beijing Automotive Industry Corp at the end of this year.
The venture, formed in 2005, assembles the Mercedes E-Class sedans and Chrysler cars. Earlier this month, it launched a 2.5-liter E-Class sedan.
BMW, which kicked off local production in 2003, is considering building a second plant in China to expand production capacity.
It now has a venture with Brilliance China Auto to assemble the 3 and 5 Series sedans in northeastern city of Shenyang, with an annual production capacity of 41,000 units.
Sales of all China-made vehicles rose by 23.3 percent to 4.37 million units during the first half of this year due to strong demand from local buyers, according to data from China Association of Automobile Manufacturers.
Sales of passenger cars - sedans, sports utility vehicles and multi-purpose vehicles - hit 3.08 million units in the same period, up 22.3 percent.
Full-year total vehicle sales in 2007 are forecast to reach 8.5 million units, including 5 million passenger cars.
Volkswagen also plans to produce its latest engines and gearboxes in China to equip its locally made cars, in an effort to cut emission rates by more than 20 percent by 2010, in comparison with 2006 figures.
The plan will cost the carmaker $600 million.
BMW has implemented a slew of market initiatives since 2004 to build a better brand image in China, such as price cuts and donations to educational, environmental protection and cultural programs.
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