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Battling to Maintain Sales Lead, VW Heads to Undeveloped China

New plant in Xinjiang is maker’s 102nd worldwide.

by on Aug.30, 2013

VW is well established in China's Pacific Crescent - but now it wants to target emerging regions of the country.

Pushing to maintain its long-time lead in what is now the world’s largest market, Volkswagen is looking to boost production capacity while targeting regions of China only beginning to feel the benefits of the country’s rapid economic boom.

The new VW plant in western Xinjiang Province is home to a number of so-called Level 3, 4 and 5 cities that each have more than a million residents — but which have yet to experience the huge demand for cars experienced by Pacific Coast cities like Beijing and Shanghai.

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“There is today already a clear trend westward, while growth momentum in the east of the country has to some extent returned to normal. Volkswagen has taken this trend into consideration by building the production plant in Urumqi,” the provincial capital, said Jochem Heizmann, chief executive officer and president of Volkswagen Group China.

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VW Ups Chinese Arms Race

Maker hopes to head off rivals GM, Toyota with new plants.

by on May.17, 2013

VW aims to maintain its lead in China with a mix of new products and more production capacity.

The automotive arms race in China is showing no signs of abating; if anything, the market’s leaders are stocking up more ammo.

General Motors, which this year expects to sell a record 3 million vehicles in China, has announced plans to raise its capacity in the booming market by 20%. Toyota also has disclosed plans to raise their presence in China – which is now the largest passenger car and commercial truck market in the world and is on its way to becoming the top luxury market in the world as well.

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Meanwhile, Volkswagen has marked the beginning of construction on a new assembly plant in Changsha in the south-central province of Hunan.  The factory is being built as part of the maker’s Chinese joint venture Shanghai-Volkswagen (SVW).

“We are expanding our capacity in China to four million vehicles per year by 2018 in order to meet demand from our Chinese customers”, Jochem Heizmann, President and CEO of Volkswagen Group China, said at the groundbreaking.

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