VW will launch its low price brand with FAW
- Volkswagen said it would launch its low-priced brand with a Chinese carmaker, and that Chinese partner would be FAW and not SAIC. This future brand should be released over the next three years. Eventually, several models are expected to be launched in China and India and the entire South-East Asia region.
- Martin Winterkorn, Chairman of the Volkswagen Group, said the group wanted to launch a first cheap model for the Chinese market at a price between 6000 and 7000 euros, i.e. a comparable price that of Dacia Logan in Europe, which is not sold in China.
- With this new model, Volkswagen wants to compete with the vehicles offered by the Chinese joint ventures working with other international carmakers as well as those offered by independent Chinese brands.
- This announcement is interesting for several reasons: 1 - Volkswagen will not conceive alone its future low price models , unlike Renault who designed the Logan and Sandero alone. 2 / Volkswagen will not sell its low-cost models under its own brand, as Renault did with Dacia. 3 / Volkswagen think there is a market for cheap cars in China as the market is currently more focused on the mid-range and premium segments. 4 / FAW is already present on the cheap car market (Xiali) with limited success, such as the Chery QQ already on the market.
Data source: File #55 - Registrations in the World by makes
Contact us: info@inovev.com