Shanghai VW delays launch of Fabia, Tiguan in China

Shanghai, June 18 (Gasgoo.com) Shanghai Volkswagon has postponed its ambitious plans to locally build Fabia and Tiguan in China by the end of this year, the 21st Century Business Herald reports.

The joint venture automaker, originally due to make and launch Fabia and Tiguan later this year, has put off the plans until next year.

The report said the delay was announced as its Fabia 1.4L model is proved to contain polluting substance that fails to meet China's national standards. Shanghai VW is stil conducting further test on the model to dissolve this defect.

The automaker has also abandoned the plan to launch Tiguan within this year due to its low sales prediction stemming from reduced government spending in purchasing vehicles.

Shanghai VW, a Chinese joint venture of Volkswagen, is likely to rely on Lavida, its only new model this year, to maintain its sales position. It sold 38,119 vehicles in May, down 20% from the previous month.