Qatar-backed Volkswagen says still positive on China for 2015

Scandal-hit car maker says it plans to continue to expand its product portfolio in world's biggest market
Qatar-backed Volkswagen says still positive on China for 2015
(Getty Images)
By Reuters
Tue 20 Oct 2015 04:09 PM

Volkswagen expects to keep gaining market share in China, the world's biggest car market, and will continue to expand its product portfolio there, it has said.

"We expect to continue on this trajectory as we head toward year end and maintain a positive outlook for fourth quarter results in 2015," Volkswagen Group China Chief Executive Jochem Heizmann said in a statement.

Volkswagen, which is 17 percent owned by the Qatar Investment Authority (QIA), is reeling from a scandal caused by its rigging of diesel emissions tests, and plans to cut spending on models, technology and production facilities at the VW brand by 1 billion euros ($1 billion) a year through 2019.

But VW China said it would forge ahead with the expansion of its product portfolio, which already includes 148 models ranging from compact cars to sports utility vehicles and large saloons.

It said it was particularly optimistic about future growth in tier 3, 4 and 5 cities, with a burgeoning middle class and low rates of car ownership.

VW reported a 0.8 percent decline in sales in China in September, while the Chinese car market grew for the first time in six months.

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.