Aritcle — Volkswagen Magotan

27 Мар 2015 | Author: | Комментарии к записи Aritcle — Volkswagen Magotan отключены
Volkswagen Magotan

Volkswagen is definitely out in China’s market

by Jennifer Chen

− by Moyan Qingfeng

two joint venture, FAW-Volkswagen and have been dominating the sedan market in China past years.

But products of Japanese counterparts, the new Honda the new Nissan Teana and the Toyota have outperformed the Magotan, the CC and the Superb. Without new star Volkswagen China will its share in the B-class market.

The Volkswagen calculated precisely the cycle of the Passat and is to launch the Passat and the Magotan B7L in China in This will be the year of the vs. the Japanese vs. the Americans and it remains to be who will grab the throne of the sedan segment.


A series of changes have at the B-class segment in recent For example, the rapid growth in its the sportier styling and the arrival of new from France and Korea. changes, which have happening all along, are now pointing to a adjustment that OEMs are to confront.

Table 1. Sales of B-class in 2009-2010 (in units)

Accord 175,361 -2.07 61 39

Camry 156,229 3.32 53 47

Teana 108,504 29.80 37 63

LaCrosse 43,453 140.21 — 100

79,386 79,982 -0.75 60 40

130,971 111,299 17.67 95 5

37,796 14,624 158.45 89 11

78,859 67,018 16.67 84 16

CC — — — 100

of nine B-class models in

As Table 1 shows, Volkswagen (FAW-Volkswagen and Shanghai-Volkswagen) posted as the top with its four models Passat, Superb, Magotan and totaling 264,979 units. (FAW-Toyota and GAC-Toyota) won second with the Camry and Reiz at units in total. Honda and GAC-Honda) came out as the third sales of 191,130 of the Accord and Shanghai-GM (Buick LaCrosse and sold 183,763 units as the Although none of Volkswagen’s models was a winner, it did not prevent the carmaker from achieving total sales. Multi-brand seems to be a great satire in for precision branding strategy.

The two once popular Japanese the Accord and Camry, have met a in China without much of a to make a breakthrough. The seemingly market share of the Volkswagen and Magotan could not match growth potentials. The Buick and Regal have earned market shares for Shanghai-GM to its revival efforts for the Buick Sales increase of the new Nissan cannot prevent Japanese from going downwards in the segment.

With breakthrough in total volume, the product of German models has moved to lower-level segment and the Volkswagen value has shrunk as well. The and the Teana have moved to the 2.0L level as well. In the Accord, with total unchanged, starts to upgrade its structure to the 2.4L level. The LaCrosse and Regal, as role in the mid- and higher-end market, realized large profits in the of the 2.4L segment.

Volkswagen is definitely out in the B-class The realization of leadership role in sales through four of its JVs was achieved at the expense of brand a major drawback for Volkswagen. The the sales volume of the Jetta and the more erosion Volkswagen in its brand value. Shanghai-Volkswagen’s new and FAW-Volkswagen’s Magotan B7L seem to arrived just in time to help elevate the Volkswagen value in the B-class segment.

The era of B-class sedans

The unveiling of the new and Magotan B7L is expected to have impact on the B-class market. The new is to compete directly with the LaCrosse on the East China threatening the market share so far by the LaCrosse and the Regal in the 2.4L

Table 2. January-February sales by 2010-2011 (in units)

Accord 31,617 0.01

Teana 22,025 13.29

Camry 26,699 -14.35

LaCrosse 14,238 36.45

Regal 10,733 18.49

Passat 18,473 21.42

Superb 7,411 56.39

Magotan 13,731 -33.38

CC 3,433 0

As Table 2 shows, the nine and higher-level models have a mere 9.15 percent year-on-year during January-February in Sales of the new Passat and the Magotan B7L are to surpass 10,000 units per which is the potential growth of the whole segment. All other in the B-class market will a tough time after the two models hit the market unless the segment demand grows.

With the old and new generations of Shanghai-Volkswagen’s to be jointly sold in the market and the marketing strategy of the Magotan Volkswagen seeks to expand the high-end 2.4L range competing with the LaCrosse and the Shanghai-GM may launch revamped of the Buick models in response.

The of the new Passat and Magotan B7 will have a profound impact on of the 2.0L models. The average level of ¥180,000 ($26,471) of cars is expected to be pulled by ¥10,000-¥15,000, posing a potential for the new Dongfeng-Yueda-Kia K5 and the soon-to-be-launched 8 th -generation of Beijing-Hyundai.

Direct competition may not between the new Passat and Magotan B7L and the Japanese models due to the differentiation of sales in China. But if Volkswagen the two new models as instrument in pushing its South China strategy, the Camry and Teana will not lose in sales but also shares there.

The mid- to higher-end car market in has not been fully developed and new will definitely arouse competition. If Volkswagen’s two joint learn from past and price the new Passat and Magotan B7L a cut-throat competition in the B-class is unavoidable.

Rewritten by Jennifer based on author’s blog on

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