VW investing heavily to maintain market lead in China

VW have revealed group sales in China have risen 39% in the first 9 months of this year to nearly 1.5 million units.

The German manufacturer has already exceeded its group sales in China for the entirety of 2009, when it delivered 1.4 million units.

Sales for Audi, which is China’s leading luxury brand, soared 61% to 174,900 units in the first 9 months, thanks to strong demand for the long-wheelbase A4 and A6 sedans, while Skoda sales jumped 65% to 134,500 units, and VW brand sales climbed 34%.

VW, which is China’s largest foreign car maker and enjoys joint ventures with Shanghai Automotive and FAW, is investing heavily to retain its top ranking. The car maker has announced plans to build two new assembly plants in southern China, doubling its production to 3 million units in 4 years and develop new models, investing 6 billion euros in the process.

Explaining VW’s massive investment in the region Juergen Pieper, a Frankfurt-based analyst at investment bank Bankhaus Metzler said “China is VW’s undisputed No. 1 priority, a third of VW group profits stem from China and its weight is likely to increase rather than decrease. China continues to be a goldmine that VW can’t afford to let go.”