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Shanghai Volkswagen sees potential sales in Skoda models

A car with a fuel efficient engine from a Czech Republic automaker can be the trigger for Volkswagen’s sales to sky-rocket up the ceiling, according to Shanghai Volkswagen Company.

Shanghai Volkswagen Automobile Company, which is a result of the fusion of Chinese and European automakers, sees Skoda to boost its sales and share in the Chinese market in the near future. According to the company, they are expecting Skoda, which is wholly owned by Volkswagen AG, to get about 2.5 to 3 percent of the passenger car market in China before the turn of the decade.

Skoda did not click back in its homeland thus automobile industry’s analysts and experts consider this move by the partnership of Chinese and German automobile manufacturers to be a big leap of faith. Moreover, the Shanghai Volkswagen Automobile Company is sure to be taking a risk in selling Skoda-made cars into the China, which is the second largest automobile market, without knowledge if the people of the republic will embrace this virtually unknown brand.

The fate of Skoda vehicles, however, is still blurry. Shanghai Volkswagen did not disclose as to how many units are expected to be sold by 2010, but the company aims to sell over 30,000 units of the Skoda Octavia in China before 2007 ends. This goal units will help increase total sales to 400,000 units from 352,000 last year. Just last month, the compact sedan Skoda Octavia had its debut in China and has been receiving good reviews from China-based auto publications. Aside from Skoda, other models like Fabia and Superb will be introduced in China in the near future.

“The introduction of Skoda is the start of our multi-brand strategy and will expand our lineup to satisfy growing customer demand,” said Yale Zhang, the director of Greater China Vehicle Forecasts.

This entry was posted on Friday, July 20th, 2007 at 12:31 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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