VW Group China unveils masterplan

Volkswagen Group China announced its "South China Strategy" during the seventh China Guangzhou Automobile Exhibition.

With plans for a three-fold increase in sales to more than half a million units in south China by 2018, the auto giant has its sights set on doubling its nationwide sales to two million units over the next decade.

Chief executives of Volkswagen Group China and FAW-Volkswagen take a collective  photo at the recent press conference to premier the Golf GTI. The third from  left is Dr Winfried Vahland, president and CEO of Volkswagen Group China.

Chief executives of Volkswagen Group China and FAW-Volkswagen take a collective photo at the recent press conference to premier the Golf GTI. The third from left is Dr Winfried Vahland, president and CEO of Volkswagen Group China.

The company brought its complete range of brands to the Guangzhou Auto Show as it debuted its south China Strategy, an area that generates about a third of the country's GDP.

"South China is today one of the wealthiest and most developed markets in Asia," said Dr Winfried Vahland, president and CEO of Volkswagen Group China.

South China is the key growth engine for the whole nation, and is one of the most affluent and developed markets. Despite the financial crisis, Volkswagen still believes in the growth of the auto market in south China.

During its development in China, Volkswagen Group China mainly focused on markets in the north and east, with each contributing 20 percent to sales through its joint ventures - Shanghai Volkswagen and FAW Volkswagen - as well as imported vehicles.

The south now comprises only 12 percent of its market. Volkswagen has factories in the eastern city of Nanjing and the western city of Chengdu, while the south has manufacturing bases for Japan's Toyota, Honda Motor and Nissan Motor.

Through its South China Strategy, Volkswagen Group China is determined to improve its market performance in south China, together with Shanghai Volkswagen and FAW Volkswagen.

"It is a joint strategy for Volkswagen Group China, Shanghai Volkswagen and FAW-Volkswagen. We trust people in our company. We want to be a reliable partner in China and serve our customers in a positive way", said Vahland.