On April 20, Volkswagen has attended Beijing Auto Exhibition with Shanghai Volkswagen, FAW- Volkswagen, and Volkswagen Imported with 37 new cars. Memberof Director and senior management of Board of Volkswagen Group have introduced the company experience in China for recently years. In sum, it is covered with“investment”, “new energy” and “digital”.
Up to now, among the 15 annual reportpublished companies, 12 companies of them realize profit growth, and 6 companies of them even realize more than 50% profit growth. Analyst points out that automobile industry situation this year is not very bright, and some companies may change their strategy. New energy automobile mass production, traditional segment subdivided is the tendency this year.
According to introduction of CEO and President of Volkswagen Group, Jochem Heizmann introduction, Volkswagen Group has delivered as many as 880,700 cars to Chinese customers in the first quarter of year 2014, which has increased 14.5%. Volkswagen has taken almost 80% sales of it, which amounts to 682,700 cars, and has realized 14.1% growth.
In year 2013, Chinese automobile manufacture situation is better than last 2 years did. As statistics by China Automobile Association that automobile production of year 2013 is 22.17 million, and sales is 21.98 million, which has increased 14.76% and 13.87% over the performance of last year. Both production and sale of passenger car and commercial car realize not small growth.
In the past few years, Volkswagen has remained about 2 digitals growth in China. In year 2011 and year 2012, as we known they are slack season of automobile industry; the company has realized 17.7% and 24.5% growth. Winterkorn believes that Volkswagen will remain 2 digital growths in China this year. He says Volkswagen annual car delivery in China shall exceed 3.5 million. According to statistics, Volkswagen has delivered as many as 3.27 million cars in China mainland and Hong Kong.
The industry upturn is reflected by aural report of listed automobile companies. As statistics by Wind, Marjory of automobile companies, which published their financial report, perform well. GAC, BYD, Dongfeng Auto and FAW net profit growth even exceed 100%.
Winterkorn, president of Director of Board of Volkswagen Automobile Group Management, says Chinese automobile industry growth has slowed down for the recent 2 years, but customer’s automobile demand is still exist. Therefore Volkswagen plans to increase its production capacity which is quite different from other companies who busy with capacity reduce.
SAIC, a benchmark of automobile plate car sales of year 2013 is 5.11 million, which has increased 13.7%. Besides, Shanghai GM and Shanghai Volkswagen sales are taken top 2 ranks among national passenger car sales. SAIC- GM- Wuling still leads mini bus market. The Group has realized 24.8 billion CNY, which has increased 19.53% over last year did. FAW annual report says that the company has realized income of 29.68 billion CNY, which has increased 26.9% over last year, which realizes net profit for stakeholders of 1 billion CNY, which has increase 233.13%.
Besides capacity increase, Volkswagen Group has announcedto deep its dealer network into third and fourth tiers cities. Up to year 2018, dealers of Volkswagen in China shall increase to more than 3,600 from 2,400 this year. It will realize more than 50% growth. It is expected to have more than 350 dealers open for business this year.
GAC Group says that the good marker performance is contributed by China automobile industry recovery. Besides, synergistic effect among surround business units strengths the situation. Automobile accessory, insurance, automobile finance and trade service have increased rapid. BYD has realized income of 27 billion CNY, which has increased 9.62%. The second charging and new energy business have contributed a lot for group achievement.
Besides, Winterkorn says Chinese market demand ask more and more about green energy and environment friendly. 2 joint ventures of Volkswagen, Shanghai Volkswagen and FAW- Volkswagen shall invest as much as 18.2 billion euros into modes, power system, environment protect technology and energy saving research. “China is the biggest single market for Volkswagen and it is the key for our year 2018 strategy. This year, Volkswagen aims more than 10 million cars delivery globally.”It means that sales goal of year 2018 will fulfill in advance./
Some institution says automobile industry has recovery season. Its market performance follows expectation.