Volkswagen is planning a new small car brand for China

Volkswagen is planning a new small car brand for China

According to several published reports, Volkswagen is developing an 11th brand, which will be available in China and will guide after the following motto: "Volkswagen fur die Volksrepublik" Volkswagen for the People's Republic. The growing number of Chinese customers outside of large cities like Beijing and Shanghai is the target of the new brand, which plans to develop small cars to these new demographic segments.
Like all foreign automakers, the German carmaker builds and sells cars in China under its own brand, but the Chinese law mandates joint-venture operations with Chinese partners. The plans of the Chinese government include an increase of the market share of local brands from 30 percent to 40 percent by 2015 regarding the Chinese auto industry and VW aims to launch a unique car brand or sub-brand with its partners, available in China of course, to sell new and smaller cars. The Chinese brands have been promoted by the Chinese government for some time now and VW China CEO Karl-Thomas Neumann recently stated to China Daily that they were in talks with their Chinese partners and they saw the local brand as a great opportunity to enter new market segments. On the other hand, considering that Honda and GM have already begun developing new local brands with their Chinese partners and it seems that VW is only playing catch-up.
The Everus brand which begins sales of the S1 model early this year belongs to Guangqi Honda, a partnership between Guangzhou Automobile Group and Honda Motor.


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