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Bumper growth for super Skoda

By Zhang Ranran (China Daily)
Updated: 2009-04-20 08:39

New models, such as the Superb, strengthen Skoda's brand name.

First-quarter sales of Shanghai Volkswagen's Skoda badge jumped 26 percent over a year ago to 21,568 units, enabling China to outstrip Germany as the Czech brand's biggest market globally.

In March alone, Skoda sales surged 42.6 percent from the previous month to 8,848 units, a new monthly record.

The number of Skoda Octavia Mingrui compact cars purchased jumped 48 percent from February to 6,799 units. Figures for its Fabia Jingrui subcompact rose 26.9 percent to 2,049 units.

As Skoda's first China-made model, the Octavia Mingrui is one of the four most popular in the compact car segment with sales of 110,000 units over the past two years.

Analysts said China is expected to outstrip Germany to be Skoda's top market in the world for the entire year based on the strong performance in the first quarter. In Germany, Skoda is suffering sluggish sales as a result of the global financial turmoil.

Last month, Shanghai Volkswagen launched an upgraded Octavia Mingrui. Even with more than 15 improvements, the model targets unassuming buyers who pursue a quality life and efficiency, and strive for a balance between the contemporary and the traditional.

With its three engine options of 1.6, 1.8 TSI and 2.0 liters, the Octavia Mingrui continues to lead in the compact segment due to its superior quality and outstanding performance.

Compared with the Octavia Mingrui, the Fabia Jingrui, with its 1.4 and 1.6 liter engine options, targets the previously untapped subcompact segment.

Robust sales come from accurate market positioning. By adopting the slogan "Believe in your life" and highlighting its five key product benefits - seeing, riding, driving, using and enjoying - the model aims at young customers between 25 and 34 years old with a higher educational background.

Benefiting from low purchase taxes and a superior product in the niche, monthly sales of the Skoda Fabia Jingrui have grown strongly since its launch at the end of last year.

With its new German subcompact design, the Fabia Jingrui focuses on competitive prices, comfortable interior space, advanced technology and safe driving quality, which is tailored to the need of realistic young buyers seeking high quality life.

Skoda's record sales confirm the strategy by Shanghai Volkswagen to produce multiple brands. New model launches enable Skoda to enrich its product range, strengthen brand-building, expand sales networks, and further drive its market share.

Skoda has become a competitive brand in the Chinese car market with a symbol of high-quality motoring experience coupled with strong social responsibility and premium customer care.

Shanghai Volkswagen plans to introduce the Skoda Superb mid-sized sedan before the end of this year.

The joint venture also plans to expand its Skoda sales networks to 230 showrooms in China by the end of 2009. It is also looking to increase the brand's penetration into second- and third-tier cities.

(China Daily 04/20/2009 page27)