Volkswagen are adding a new brand to their seemingly endless brands, with the launch of the Jetta brand in China aimed at the budget domestic market.
Volkswagen already leads the market in China’s main volume sector, but it has plans to take on China’s domestic makers by targeting the segment below the main volume sector with a new budget brand – Jetta.
The jetta brand is set to launch in China later this year targeting a younger, less affluent demographic than VW’s main model offerings in China, a market currently dominated by a range of domestic China brands, with models developed with VW’s Chinese partner FAW.
The aim is to grab a chunk of the entry-level market in China – where a huge 80 per cent of buyers are first timers – in Tier 3 to 5 cities which is almost half the China market for cars.
VW are planning a network of 200 dealers for the Jetta Brand, and the target price looks to be around the £5k mark, with a single saloon and a pait of SUVs the initial offering.
VW aren’t calling Jetta a budget brand, although it clearly is, but in a market where sales are fragmented across a wide range of domestic marques the Jetta brand could make real inroads.