German concern Volkswagen, together with its Chinese partner FAW, is considering the possibility of creating a new brand for the Chinese market, which will be sold under the low-end models.
This will allow the company to increase sales of its cars to the booming auto market in the world and will provide an opportunity to compete with other manufacturers who have already launch new brands in China. These include General Motors, and Nissan and Honda.
However, before making a final decision, to create a new brand or not, the company intends to carefully analyze the development of the budget segment in China. The government’s support for this idea, because it will allow access to the European car assembly technology.
Currently, Volkswagen is building in China, two new car assembly plants with total production capacity of 300,000 vehicles a year and the possibility of further expansion to 600,000 vehicles a year. The launch of new plants will take place in the next two to three years.