· The current capacity competition, Volkswagen, renewed the "one brother" battle

Since China became the world's largest auto market, almost all car companies have regarded the Chinese market as a “cash cow”, which has also led to a rare production competition in the world. In the past two years, almost all major automakers, including Changan Ford, Guangqi Honda, SAIC-GM-Wuling, and Dongfeng Yueda Kia, have established new plants or laid foundations or completed. Just when everyone thinks that this boom will stop for a while, the two car companies that currently occupy the largest market share in China - Volkswagen and GM have announced plans to build a number of new factories, and behind this are two car companies Competing for the ambition of the top spot in the Chinese market.
The "one brother" battle is in a state of anxiety. In 2013, Volkswagen's sales growth in China was strong. Among them, FAW-Volkswagen's annual sales totaled 1.607 million units, up 17.4% year-on-year, including sales of Audi's brand of 488,000 units. Meanwhile, Volkswagen's other joint venture company, Shanghai Volkswagen, sold a total of 1.525 million units, up 19.1% year-on-year. Thanks to strong performance, in this year, Volkswagen surpassed GM with an advantage of 91,000 vehicles and won the sales champion in the Chinese auto market.
In the nine years before 2013, GM has been firmly seated in China's sales ranking in China. Coincidentally, in 2005, GM won the title of sales champion from the public.
Since the beginning of this year, GM and Volkswagen have become more and more enthusiastic about the sales champion. In the first quarter of this year, GM sold more than 919,000 vehicles in China, surpassing Volkswagen's 881,000 vehicles. However, by the end of the second quarter, Volkswagen had regained a city: in the first six months, Volkswagen’s sales in China increased by 18% to more than 1.8 million units, while the general area was 1.73 million units, and the growth rate was only 11 %.
“Because their products are in the middle of the market, Volkswagen’s market share is increasing.” Jochen Hibbert, managing director of JSC, a car consultancy, said that in the Chinese market, the pedigree of mass products is more complete, and at the same time In the process of high-end market segmentation, the public has increased the loyalty of consumers by using the word-of-mouth and brand image established over the years. In this regard, GM is slightly inferior.
Not only that, the industry believes that GM's high-speed growth is still largely dependent on the growth of SAIC-GM-Wuling. In 2013, SAIC-GM-Wuling completed sales of more than 1.6 million vehicles, accounting for more than half of GM's sales in China, and the joint venture between GM and SAIC and Wuling has not only operated a generic brand. If the sales of SAIC-GM-Wuling are removed, the gap between GM and China will be even greater.
Re-emergence of capacity expansion At present, China has become the largest market for Volkswagen and GM, and for both of them, China is still the key to surpassing Toyota in the world.
“China is our largest and most important market,” Volkswagen CEO Wendeng said in a statement recently. “In order to meet the needs of Chinese consumers, we are developing a longer-term capacity expansion plan.” On the other hand, Volkswagen's plan has begun to be implemented: Recently, Volkswagen announced that it will build two new factories in Tianjin and Qingdao for the production of compact models, which will also make Volkswagen's total investment in China exceed 20 billion euros.
According to a report posted on the public website, Volkswagen plans to increase its sales model in the Chinese market to 100 by 2018, and in 2013, this figure was only 63. At the same time, Volkswagen also plans to increase the number of dealers from 2,395 in 2013 to 3,600 by 2018.
Volkswagen said in April that it expects to sell more than 3.5 million units in China this year, which makes it expected to exceed 10 million units worldwide in four years ahead of schedule. At the same time, GM also said it will increase its production capacity in the Chinese market to cope with the growing demand.
GM China President Qian Huikang previously said that by 2020, GM's annual production capacity in China will increase by 65% ​​compared with 2013. It is understood that by the end of next year, GM will build five new plants in China. The total investment of these plants will reach 12 billion US dollars by 2017. By the end of 2018, GM will introduce more than 60 new or modified models. .
Data show that in the first half of this year, passenger vehicle sales in the Chinese market increased by 11% over the same period last year. According to industry analysts, due to the influence of multiple policy factors, the growth rate of China's auto market will remain at around 10% this year, which is lower than the 14% growth last year. However, many automotive research institutes predict that the annual sales volume of the Chinese auto market will exceed 35 million by 2020. Perhaps this is the key to the competition between Volkswagen and GM.

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