German carmakers dominate world's largest auto market

By Li Fusheng | China Daily | Updated: 2017-07-07 09:07

German automakers are among the most important players in the Chinese auto market, the world's largest.

Volkswagen, which translates to "the people's car" in German, is living up to its name in the country.

One of the first international automakers to produce cars in China, Volkswagen has also become the first to have three partners in the country: SAIC Motor, FAW Group and JAC Motors.

Together with its joint ventures, Volkswagen sold nearly 4 million gasoline cars last year in the Chinese market, beating all other carmakers with operations in the country.

The automaker is also charging ahead in China's new energy vehicle market, with the joint venture with JAC dedicated to producing and selling new energy vehicles.

Its first model, which will be produced at existing JAC facilities, is expected to roll off the assembly line in 2018.

That would give Volkswagen a head start in the country, as the first localized electric car from its major rival GM will not hit the market until at least 2019 and Ford's first model is not expected until after 2020.

Industry insiders said JAC is also expected to benefit from the partnership in terms of both sales and research capabilities, as the joint venture will also build a research and development center.

Volkswagen has set a goal to deliver 400,000 new energy vehicles in the country in 2020, and by the end of 2025, a total of 20 Volkswagen-branded new energy vehicle models will hit the market.

Matthias Mueller, CEO of Volkswagen Group, said: "Just as we have played a key role in shaping mobility together with our partners in China over the past 30 years or more, we want to play our part in shaping the mobility of the future: electric, fully networked and in line with the needs of our customers."

While Volkswagen has to work hard to maintain its leading position in the volume car sector, Audi, BMW and Mercedes-Benz are dominating China's premium car sector.

In the first three months of this year, BMW and Mercedes-Benz each sold more than 140,000 cars in China, while Audi delivered over 100,000 units, these figures were far more than other players.

In comparison, in the No 4 spot, GM's Cadillac sold less than 40,000 units in the same period.

Analysts said BMW and Mercedes-Benz will compete for the sales crown this year, which was held by Audi until 2016, and the gap between the top three and the rest will not be narrowed within a short period of time.

The three dominant players are also the first to localize their models in China, which has now become their largest market worldwide.

Of the three, Audi was the earliest. It started to assemble its Audi 100 sedan in 1988. That year, China produced 77,000 vehicles, the majority of them trucks.

BMW's first plant started operation in 2004. It now has three plants in China, including one engine plant, which is also its first outside Europe.

Mercedes-Benz's passenger car manufacturing complex in Beijing is its largest worldwide. Beijing is also home to its first engine plant outside Germany.

It is producing four models at its Beijing plant: the C-class sedan, the E-class sedan and the GLA and GLC SUVs.

"We have been able to increasingly place Chinese characteristics at the forefront of development across our range of cars," said Nicholas Speeks, president and CEO of Beijing Mercedes-Benz Sales Service in an earlier interview.

lifusheng@chinadaily.com.cn