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China

Volkswagen and Audi Expect Significant Growth in China After WTO Entry

Strategic Insights

— 1 min read

Volkswagen and its subsidiary, Audi, are well-established in China with a joint venture in Shanghai since 1985 and another in Changchun in 1991. Their cars, such as the Santana and Jetta, have gained a high reputation both in China and globally, with an annual production capacity exceeding 500,000 units for each model. German cars now hold over 50 percent of the Chinese market share, with Volkswagen accounting for 49 percent and Audi accounting for 2.6 percent. Both companies plan to expand their product lines, with Audi introducing the Bora and Volkswagen modifying the Lupo for the Chinese market.

Key Takeaways:

  • Volkswagen and Audi have been operating in China since 1985 and 1991, respectively, with joint ventures in Shanghai and Changchun.
  • Their cars, Santana and Jetta, have an annual production capacity exceeding 500,000 units each.
  • German cars hold over 50 percent of the Chinese market share, with Volkswagen accounting for 49 percent and Audi accounting for 2.6 percent.
  • Audi plans to introduce the Bora and modify the Lupo for the Chinese market.
  • Volkswagen will expand production of the Passat in China, while Audi will increase production of the A4 and introduce the A6 and A8 luxury cars.
  • Audi aims to sell 15,000 A6 cars this year and 30,000 A6 cars in the next five years.
  • FAW Volkswagen has a capacity operating rate of 50 percent, which is expected to reach 100 percent with the start of Bora car production and expansion of A6 car production.

Statistics:

  • 50%: German cars hold over 50 percent of the Chinese market share.
  • 49%: Volkswagen accounts for 49 percent of the Chinese market share.
  • 2.6%: Audi accounts for 2.6 percent of the Chinese market share.
  • 500,000: Annual production capacity of the Santana and Jetta cars.
  • 15,000: Audi aims to sell 15,000 A6 cars this year.
  • 30,000: Audi aims to sell 30,000 A6 cars in the next five years.

Sources:

  • Beijing, Aug 9 Asia Pulse
  • Volkswagen and Audi China operations
  • Chinese market share data

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