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Volkswagen Group China plans to go west after progress in southern China

Published July 26, 2011

In 2018 China Car Times was acquired by Autowise. This article originally appeared on

Karl-Thomas Neumann, president and CEO of Volkswagen Group China, recently announced his first strategic plan for Chinese market since he took the position, i.e. Go West strategy.

Volkswagen Group China has made progress in the southern Chinese market. Its market shares in southern China increased 1.3% from a year earlier in the first five months of this year. By this May, its market shares in southern China had reached 15.5%. The rapid growth could be attributed to the companyâs Go South strategy.

As the latest moves of the companyâs Go West strategy, FAW-Volkswagenâs Chengdu production base will start production this September. Recently, FAW-Volkswagenâs Chengdu EA211 engine plant Phase I and the Chengdu auto plant Phase III started construction. The investment in the two projects surpasses 10 billion yuan. The two projects will complete construction in March 2013. By then, the newly-added auto capacity will be 450,000 units.

It is also rumored that Shanghai Volkswagenâs No.6 plant will be located at Urumqi, Xinjiang Uygur Autonomous Region. Mr. Neumann did not deny nor confirm the news, and he only said that they are still choosing the possible location.




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