Volkswagen AG is ramping up the production of the next generation of the Phaeton sedan, which will make its appearance at the Beijing auto show opening this month, according industry insiders. The new model will feature newly designed front and rear sections, an upgraded interior design, as well as more engine options.
The new Phaeton is targeting China’s high end consumers. According to the China Rich List compiled by Rupert Hoogewerf, approximately 825,000 people in the country had a net worth of more than 10 million yuan (approximately $1.5 million) as of the end of 2009.
Volkswagen sold 1.4 million vehicles in the fast growing Chinese market last year, an increase of 37 per cent over a year earlier. The auto maker plans to invest 4 billion euros (approximately $5.4 billion) in China before 2011 to build new facilities and develop new models, in a move to push its annual sales in the market across the 2 million unit mark by 2018.
In addition, Volkswagen is seeking to overtake Japan’s Toyota to become the world’s largest auto maker in next eight years.
Phaeton saw sales in China for last year rise 40 percent from the previous year to 1,400 units, compared to its global sales of 4,500 units.
The Chinese market plays an important role in the success of Volkswagen’s expansion plans, which is being proven by its selection of China as the locale in which to unveil its new Phaeton, an industry analyst says.
