VW to launch mid-class Livada in China

Shanghai Volkswagen Co Ltd said it will launch a new mid-class sedan in China this year to complete its product mix and tap the growing demand in the world's second-largest auto market.

The model, named Livada and which means life and hope in Spanish, will be a brand-new version specially designed for the Chinese market under VW's global product strategy.

''It will be the prototype for our next-generation model in the economy car sector and will also be the benchmark in the rapidly expanding segment,'' the company said.

Shanghai Volkswagen is the joint venture between German car maker Volkswagen AG and Shanghai Automotive Industry Corp.

The Livada is expected to make its debut at the auto show in Beijing in April and will be marketed to appeal to young people.

The model illustrates Shanghai VW's efforts to increase its self-development capabilities and compete with rival Shanghai GM.

Shanghai Volkswagen reported its sales rose 23 percent to 436,000 units last year, with the biggest sellers including the Santana, Polo, Touran and Skoda's Octavia.

But General Motors Corp's Chinese venture Shanghai GM held its sales crown in China last year with sales improving 22 percent to 500,000 units.

China's passenger car sales rose 21.7 percent to 6.29 million units last year, according to China Association of Automobile Manufacturers.