Business / New Cars

VW's latest tech, continued growth

By Han Tianyang and Gong Zhengzheng (China Daily) Updated: 2012-09-24 11:08

New China head: Hybrids the most feasible new-energy cars

As the world's biggest vehicle market faces mounting pressure from oil prices and pollution, German carmaker Volkswagen Group has vowed to bring its latest energy-saving technologies into China to consolidate its nearly three decades of leadership.

In an exclusive interview with China Daily last week, Jochem Heizmann, Volkswagen board member and China chief, said the group will produce plug-in hybrid models in China within two to three years "at the latest" as a major part of its new technology campaign in the country.

He stressed that Volkswagen will also make its advanced plug-in hybrid powertrain locally.

But he declined to reveal which models will be equipped with the technology or a sales target for its new energy cars in China.

Using the company's flexible module system for product development, Volkswagen is able to apply the plug-in hybrid powertrain in "a broad spectrum of models" in China, he said.

The strategy meets Chinese government plans to aggressively promote energy-saving vehicles, with the spotlight on purely electric and plug-in hybrid cars.

In July the government unveiled a blueprint that calls for cumulative sales of pure electric and plug-in hybrid vehicles in China to reach 500,000 units by 2015, and then 5 million units by 2020. The targets are backed by a range of incentive policies including subsidies for buyers and tax breaks for manufacturers.

A number of other global automakers and indigenous brands also plan to offer energy-saving vehicles in China following the government announcement to cash in on the nascent segment.

According to Heizmann, traffic congestion and cold weather could affect the range of pure-electric cars, so plug-in hybrid vehicles are more feasible in China and could take the bigger share in the mid and long term.

He added that the fuel efficiency of Volkswagen's full fleet of conventionally powered cars made in China has increased by 20 percent over the past few years, and the work will continue for even better results.

Volkswagen Group now has joint ventures in China with Shanghai-based SAIC Motor and FAW Group in the northeast. Last year it delivered 2.26 million vehicles in the country, more than a quarter of its global sales.

The German carmaker announced the appointment of Heizmann as president and CEO of China in June, which took effect on Sept 1, an unprecedented move for a board member of a major global carmaker to dedicate solely to China operations, indicating how important the Chinese market is in Volkswagen's bid to become the world's top carmaker by 2018.