Pollution and fuel prices
In what is considered a very clever strategy, Volkswagen China is making great steps to meet demand in China. The major problem with cars in the country is the major pollution which is severely damaging the environment. Fuel costs are also driving motorists off the road and angering many. China is clearly in need of more fuel efficient and eco-friendly vehicles. Volkswagen is attempting to do just that.
Karl-Thomas Neumann confident
Karl-Thomas Neumann President and CEO for Volkswagen China, is “confident” of success as he explained in a statement. He said “We passed 1 million in 2008 and nearly three years later we are absolutely confident we could pass 2 million this year,”
No holding back
Neumann continued to say that the restriction on Beijing in introducing new vehicles will not halt operations as many may assume. He said “Last year this time, more specifically around Christmas, everyone is saying ‘ah, now it’s over’. Beijing is introducing this limitation on vehicles to be registered so the market will slow down,” he said.
“But in total, it is not only Beijing or Shanghai, China has much more (potential), as you can see here in Guangzhou and as you can see the growth in tier-two or tier-three cities.”
Number one by 2018
He said that “setting the standards” now will help the Volkswagen overtake Toyota by 2018 in other respects other than just pure sales. He said
“Volkswagen Group China is already setting new ecological standards with regard to vehiclesand mobility,” Neumann said.
“Our goal is to be the most successful, fascinating automobile manufacturer in the world andthe leading light when it comes to sustainability. We aim to be number one by 2018, - both economically and ecologically.”
Low demand for electric vehicles
At the moment electric vehicles are not in very high demand around the world. Sales have not taken off as expected. Reasons for this include that of its very high initial cost, when other eco-friendly alternatives such as hybrid vehicles offer great green credentials whilst being more affordable.
Volkswagen China will have to make the car very cost effective and good value for money if the vehicles are to take off as desired.