VW may build Seat plant in south China
- Source: Global Times
- [15:42 November 16 2009]
- Comments
Volkswagen AG may build a new manufacturing plant in southern China to produce and sell the Seat brand in the Chinese market, which is part of VW's "2018 Strategy" to be announced at the Guangzhou Auto Show next week, according to the Guangzhou Daily.
With an annual production capacity of over 200,000 units in the first phase, Volkswagen hopes to gain a greater market shares in southern China which is currently dominated by Japanese vehicles.
The average market share for Volkswagen in China is between 17 to 20 percent, but the number declines to 10 percent in the southern market.
Vehicle buyers in southern China prefer youthful, dynamic brands, and the Seat can satisfy them, analysts said.
Seat chairman Erich Schmitt said that his company is planning to enter the Chinese market and will choose coastal cities as its pilot market.
The Seat has some A0-class models including the Cordoba and Ibiza. Volkswagen hopes the introduction of A0-class vehicles can catch the rapid growth in the Chinese auto market.
Agencies and Shi Jierui contributed to this story
