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VW China in 2020: Keep moving forward in cold winter

From:Internet Info Agency 2021-01-20 18:26:58

2020 has passed. In this extremely extraordinary year, the Chinese auto market ushered in the worst start, but then ushered in a strong rebound, and finally showed a V-shaped trend. According to official data, the total retail sales of passenger vehicles in China in 2020 will reach 19.288 million. Although sales fell by 6.8% year-on-year, its sales volume is still the world's largest.

As in recent years, Volkswagen China still contributes the most to China's auto market sales. The sales data released by the Volkswagen Group show that in 2020, Volkswagen China and its joint ventures delivered 3.85 million vehicles in the Chinese mainland and Hong Kong, a year-on-year decline of 9.1%, and the market share reached 19.3%, continuing to maintain its leading position. However, the sales performance of its brands in 2020 is mixed.

The Volkswagen brand with the largest sales share and its sub-brand Jetta will deliver a total of 2.85 million vehicles in mainland China and Hong Kong in 2020. Among them, FAW-Volkswagen sold a total of 1.28 million vehicles throughout the year, becoming one of the auto brands least affected by market fluctuations. SAIC-Volkswagen continued to rank first in single-brand sales with annual sales of 1.395 million vehicles. The FAW-Volkswagen sub-brand Jetta sold more than 155,000 vehicles throughout the year. It was less than two years after its establishment. With the overall decline in the domestic auto market, Jetta can be said to be successful.

From the perspective of market segments, it will deliver a total of 805,500 SUVs in 2020, accounting for 29.9% of the brand's total sales, an increase of 3.9% month-on-year. The continuous enrichment of the SUV product lineup is the main reason for the substantial increase in sales. At present, the Volkswagen brand SUV models have increased from 3 in early 2018 to the current 11 models. Among them, Teramont X delivered more than 25,300 vehicles last year, an increase of 100.7% year-on-year. The TAYRON X launched in July last year further strengthened the TAYRON lineup. TAYRON was delivered more than 186,200 vehicles in 2020, an increase of 11.0% year-on-year.

And sedans are still an important pillar of Volkswagen in the Chinese market. The two best-selling models, the Bora and Lavida, will deliver nearly 800,000 vehicles in 2020. In 2020, more than 27,300 CC models will be delivered, a year-on-year increase of 12.6%.

In the NEV field, Volkswagen has launched 8 new energy models in China, including 5 plug-in hybrid models and 3 pure electric models. In 2020, the Volkswagen brand delivered a total of more than 52,300 NEVs, an increase of 36% year-on-year.

With the launch of two ID. family models specially built for the Chinese market, FAW-Volkswagen ID.4 CROZZ and SAIC-Volkswagen ID.4 X, Volkswagen’s electrification offensive has been further strengthened. It is reported that by the end of 2023, Volkswagen will launch 8 ID models in the Chinese market.

It is reported that in the next 18 months, SAIC Volkswagen will have 10 new or modified products on the market, including the new Lamando, the mid-term facelift Teramont, Teramont X and Tiguan, and 3 BEVs.

The FAW-Volkswagen sub-brand Jetta will achieve cumulative annual sales of 155,000 vehicles in 2020. In less than two years since its establishment, Jetta has continuously expanded its territory and successively brought Jetta VA3, Jetta VS5 and VS7 models, and they have also achieved quite good results.

In 2020, under the negative impact of COVID-19, the sales of most car brands and models have declined, but the luxury car market has achieved contrarian growth. In terms of brand sales, the first-tier luxury brand BMW, Mercedes-Benz, Audi has achieved substantial growth in sales in China in 2020, and Audi has set its best performance since entering China for more than 30 years. In 2020, a total of 727,000 cars will be delivered in the mainland and Hong Kong. Vehicles, an increase of 5.4% year-on-year.

Among them, Audi A6L, Q5L, and A4L are still the three best-selling models. Specifically, the annual cumulative sales of Audi A6L was 182,000, a year-on-year increase of 38.8%. Audi A4L was 139,000 vehicles, down 17.7% year-on-year. Cumulative sales of Audi Q5L were 149,000 vehicles, a year-on-year increase of 7.3%.

Except for the three main models of Audi A6L, A4L and Q5L, the cumulative sales of the remaining domestic models in 2020 will reach 204,781, which is the first time that the sales of domestic models accounted for more than 30%. It can be seen that the sales structure of Audi's domestically produced models is continuously optimized.

In order to achieve further sales, Audi will continue its product strategy in China in 2021. In addition to the official launch of the domestic version of the Audi e-tron at the beginning of this year, more than 10 models including the new Audi Q5L, the new Audi A3L, and the new Audi Q2L will also be put on the market one after another.

In addition, the pace of Audi's transformation is also accelerating. In December 2020, the four-year-old SAIC Audi project made a major breakthrough-SAIC Audi's first model, A7L, will make its debut in the second half of 2021 and is expected to officially enter the market in 2022. In the future, SAIC Audi products will be sold through the existing FAW-Volkswagen Audi dealer network, and the launch of new SAIC Audi cars will undoubtedly further help Audi sales growth.

At present, the high-end trade-in demand for consumption upgrades in the Chinese automobile market is strong, and the sales of luxury car brands and the overall market share are constantly increasing. If Audi can seize the opportunity, it is believed that sales can reach a new level.

Faced with the challenges posed by the coronavirus, Skoda further strengthened its SUV plan in 2020. Its sales of SUV models accounted for a year-on-year increase of more than 10% of the brand's total sales, but it failed to prevent the overall sales decline. Data show that the Skoda brand delivered a total of 173,000 vehicles to Chinese customers in 2020, a year-on-year decrease of 38.7%.

For Skoda, the main weakness lies in its brand power. Although it uses the same technology as the public and is more cost-effective under the blessing of officials, consumers often choose more popular brands under the weight of consumers. At the moment, in addition to continuing to enhance the competitiveness of its products, it is important to reorganize the brand and distinguish the relationship with mass brands.

Like Audi, the Porsche brand's sales in 2020 will also achieve growth against the trend, reaching 89,000 vehicles, a year-on-year increase of 2.6%. Among them, Porsche delivered 26,145 new vehicles in China in the fourth quarter, a year-on-year increase of 16%, helping Porsche to further increase sales in the world's largest single market.

Throughout the whole year of 2020, the Porsche coupe has developed rapidly in China. Data show that in 2020, the sales of Porsche's new 911 increased by 70% year-on-year, and the sales of 718 models increased by 50% year-on-year. What's more worth mentioning is that there are a high percentage of post-90 consumer groups among Porsche Chinese users, and there are more female users.

In addition to sales, Porsche is also accelerating the construction and layout of the Chinese market system in 2020. On November 18th, Porsche China opened its second spare parts distribution center. The warehouse invested 18 million yuan and has an initial area of approximately 12,500 square meters. It will provide spare parts distribution services for 37 Porsche dealers in southern China.

Summary: In 2020, all car companies will experience unprecedented difficulties and challenges. This year, some car companies withdrew sadly, some car companies are hanging by a thread, and some car companies are still advancing. In 2020, independent brands will explore upwards and enter a new stage. The market value and sales volume of new leading car manufacturers will continue to hit new highs. The prices of joint venture brands and luxury brands will continue to drop, and market competition will become increasingly fierce.

As one of the first large-scale multinational auto companies to come into contact with China after China's reform and opening up, Volkswagen Group has now become an indisputable giant in the Chinese auto market. The outstanding performance of the Chinese market has also helped Volkswagen Group become the world's largest for many years. Automobile group (by sales volume). I believe that as long as the Volkswagen Group continues to improve its product power, system power and brand power, its position in the Chinese market will remain unshakable.

Editor:Tian Qian