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Honda

Road to victory in car war runs through south China

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China may be the world's biggest car market, but it is also one of the most regionally diverse.

If the mainland were divided into four regional markets of equal size, they would occupy the No 2 to No 5 slots in global car sales rankings by volume - behind the US but ahead of Japan.

For carmakers, no regional market is more sought after than southern China, home to both the wealthiest and savviest car buyers on the mainland.

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That fact was on display yesterday at the opening of the annual Guangzhou car show, where 600 exhibitors hosted 56 press conferences to show off their wares to thousands of journalists who turned up for media day.

Volkswagen Group China's chief executive, Karl-Thomas Neumann, said: 'People say you will win or lose the battle for China's auto market in the south.'

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VW entered the mainland market in 1984 as the first foreign carmaker to launch local production, and has enjoyed a leading position in nearly all regions, 'but, historically, not in the south,' Neumann said. 'That's the reason why we decided to focus more on this important region.'

The German carmaker andits joint venture partner FAW announced last year that they would spend Euro520 million (HK$635.94 million) on a new plant in Foshan, VW's first in southern China, with a planned annual capacity of 300,000 cars.

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