In order to keep pace with the demand shifts in the China market, Volkswagen is trying to weigh the chances of manufacturing budget minivans and SUVs. Volkswagen wants to ensure that its business in China in the current year does not prove to be sluggish and slow paced. China happens to be a major market for Volkswagen.
Recently, the company has been witnessing surging demand for budget minivans and SUVs. As per past performance, significant development and volume wise rise in production took place in the segment for budget SUVs. Substantial growth was even witnessed in the segments for MPVs and highly affordable MPVs. These are the areas that have not yet been explored by the company.
A senior official at Volkswagen also stated that the company has come up with some concrete future plans to prosper in the industry in the forthcoming years, which will also include the addressing of the issue. He also stated that the company is not just talking about a car or two, but a portfolio of cars. The company is yet to confirm the new project since it is still in the exploratory stage.
In 2014, the overall SUV sale in China had increased almost three times thereby reaching a sales figure of 3.82 million. In fact since 2012, this sales figure increased more than twice. As a result, this segment has surpassed the growth that has taken place in the other segments. China has a very important role to play for Volkswagen since the sale of cars of this brand is quite sluggish in the U.S. economy and demand for the same in Europe is still in the economic recovery stage. In 2014, Volkswagen proved to be a top ranking manufacturer of automobiles in China. However, as per industry reports, the deliveries of the namesake brand cars fell by 0.6% during the very first quarter.