The Volkswagen Group in Asia-Pacific

Press Release

The Volkswagen Group in Asia-Pacific

• New sales record: 620,000 vehicle shipments mean sales figures are up by around 34.6 percent against 2002
• 513,000 sales in China make this the second largest single market in the world
• Target for China: 1 million vehicles in 2007
• Five new models for China in 2003

In 2002 the Volkswagen Group achieved record sales in the Asia-Pacific region. Shipments to customers totalling 620,000 vehicles made for an increase of 34.6 percent against the 2001 figure (461,000). For the first time ever, the share of Volkswagen Group worldwide sales generated in this region is expressed in a two-digit figure (12.4 percent against 9.1 percent in 2001). "We will continue to expand on our success in the Asia-Pacific region in the coming years, with China playing a very prominent role in our plans. In the next five years alone our investments in this market will total some three billion Euros", Dr Robert Büchelhofer, member of the Volkswagen AG Board of Management in charge of the Asia-Pacific region, explained today in Singapore. The stated aim of the Group is to further consolidate its market position in the years ahead and to generate an even higher share of worldwide Group sales there. China In China, the Volkswagen Group achieved vehicle shipments totalling 513,000 units - up by 42.8 percent against 2001 (359,000) - and thus remains the unchallenged leader on this market. This new sales record makes China the second-largest single market for Volkswagen. Shanghai Volkswagen last year increased its delivery output by 32.3 percent to 302,000 (228,000 in 2001), with all the models in the range manufactured in Shanghai (including the Santana, the Passat and the Polo introduced last year) contributing to this success. Sales by FAW Volkswagen, Changchun, were up by 62.3 percent to a record 208,000 vehicles (128,000 in 2001), with each of the models produced there (Jetta, Bora and Audi A6) able to markedly increase its output. China's new membership in the WTO last year served to generate the anticipated stimulus for economic growth, most notably for consumer demand by private households. Volkswagen will systematically continue to run its strategy of introducing at least one new model made in China each year. This year alone, the Group will launch five new models on the Chinese market - the Volkswagen Gol, the notchback Polo, the Touran, the Golf and the Audi A4. SVW will be responsible for manufacturing the Gol, notchback Polo and Touran, while FAW Volkswagen produces the Golf and the Audi A4. Volkswagen is expecting continued high rates of growth on China's automobile market. Its goal for this year is to sell 600,000 vehicles in China, with an annual sales target of one million automobiles by 2007. Japan For the fifth year running, the Volkswagen Group has managed to further strengthen its position as the number-one seller of imported vehicles in Japan. Despite an economic environment wrought with difficulties, the Group has increased its vehicles sales in this country by 3.3 percent to total 72,000 units (69,000 in 2001), thus bringing its market share in the segment for imported vehicles up from 27.3 percent in 2001 to 28.0 percent last year. Volkswagen has set its aim on maintaining its position as market leader within this segment. The Group will again expand its product range in Japan this year, with planned launches for 2003 including the New Beetle convertible, the Touareg and the Audi A8. In a move to further consolidate its position, the Group intends to extend operations by its two independent dealership organisations for Audi and Volkswagen to key locations. Southeast Asia and the Pacific region The Southeast Asia and Pacific region includes all the countries of Asia-Pacific with the exception of China and Japan. The paramount markets in this region are Australia, Taiwan, New Zealand, Thailand and Korea. In 2002, for the fifth consecutive year, Volkswagen once more achieved record sales in the region, raising the number of automobile shipments by 10.7 percent to a total of 37,000 (34,000 in 2001). Volkswagen's goal for these markets is to introduce new products such as the Phaeton, the Touareg, the New Beetle convertible, the Audi A8, the Audi A4 convertible and the Audi A3 and thus to consolidate its position in Southeast Asia and the Pacific as a whole and to achieve significant growth in sales.