FAW Volkswagen arranges layouts in 2016, setting sales target of 10% growth

Gasgoo.com (Shanghai Jan 21th)— As one of the leaders in the Chinese auto industry, FAW Volkswagen has a sales volume of 1.63m units in 2015, smaller than the targeted 1.85m units. Data from CPCA shows that, SAIC Volkswagen and SAIC GM have a sales volume of 1.8m and 1.72m units respectively.

Zhang Pijie, General Manager of FAW Volkswagen said that, the failure in 2015 is mainly caused by two “unexpected” issues. Firstly, the fast growth of crossover vehicles decreases Volkswagen’s market share of 5%. Confronting the SUV market’s 52% growth rate, the absence of SUV models makes FAW Volkswagen in a hurry. Besides, the unexpected rapid fall of luxury vehicle market slightly decreases Audi’s sales data. Compared with the previous two times,growth of luxury vehicle market accounts only 50% of the popular vehicle market in 2015. But Audi still keeps a sales volume of 571,000 units, comprising 30% of the Chinese luxury vehicle market.

Despite of the decreasing sales volume, FAW Volkswagen has a capacity utilization rate of 106% in 2015, ranking first in the industry in terms of sales revenue and profit, with an annual total tax amount of more than 50b RMB.

“We have done our best in sedans.” Zhang said. Volkswagen has completed the sorting out of sales channel, construction of dealerships and other soft power upgrading work in 2015. Sagitar, Bora, Magotan and other main models all take the lead in the respective sub markets. According to relevant person, FAW Volkswagen will realize product iteration in step with Volkswagen, by way of importing MQB and MLB platforms.

On 17th January, Zhang Pijie announced FAW Volkswagen’s 2016 target of selling 1.82m units and increasing more than 10%. 2016 will be a year of product “harvest year” for both Volkswagen and Audi brand. Volkswagen’s brands including Golf Sportsvan, New Generation Magotan, New Bora, Sagitar GLI, Jetta’s renovation model will land in the Chinese market one after another. New Audi A4L, Q3, A6L’s mid-term facelift model and A6L Hybrid will also be launched into the market.

Facing the “new model oriented” market, FAW Volkswagen intends to lift the brand power instead of being anxious in increasing sales data. Different from Benz, Lexus’s high expectancy, Audi locks its 2016 domestic models’ sales data in only 520,000 units, with an expected growth rate of 2%.

FAW Volkswagen encountered multiple challenges in 2015, and relevant strategic adjustments have been made in time. The “Sagitar Case”has become a turning point, guiding FAW Volkswagen to firstly propose the strategy of “learning from Toyota”. In the next year, FAW Volkswagen will pay more attention to customer experience, and its target will include more than the sole sales increase.