Volkswagen plans to expand Jetta sub-brand outside China

KUALA LUMPUR: Volkswagen launched its sub-brand Jetta in China in September last year, with the offering of VS5 SUV and the VA3 sedan. And now the firm claims that it has captured 1 percent market share in just eight months of starting operations in the country. 

The brand delivered 13,500 units in April, which brings the tally to 81000 delivered cars. Despite the negative impact of Coronavirus pandemic, Jetta results show a downturn of only 12% in the first four months of this year.

All the numbers reveal that Jetta has become a value-oriented brand in the most populous country in the world. So in view of this popularity, Volkswagen intends to take the brand beyond China.  

In a recent interview with Automotive News Europe, Harald Mueller, Jetta president, said that the brand had gained around 1% market share in the new vehicles segment. The brand has earned early success because the price-conscious buyers opt for it as an alternative to public transportation amid the Covid-19 crisis. He also mentioned that “The successful start has, of course, also sparked interest from other markets in the Volkswagen world.”

The brand is the result of Volkswagen's collaboration with First Automotive Works (FAW). The current Jetta models are built at the Chengdu Plant and consist of three models. The VA3 sedan is based on a market-specific version of the earlier generation Jetta, the VS5 is rated as a styled Skoda Karoq/Seat Ateca and the VS7, derived from the Seat Tarraco is based on the Volkswagen Tiguan.

At the marque’s unveiling, Jürgen Stackmann, Volkswagen Head of Sales, Marketing and Aftersales, said that Jetta plays a special role as a Volkswagen model. Now the Jetta brand will be closing the gap between the established Volkswagen lead brand in the top volume segment and entry-level mobility, which covers around one-third of the Chinese market.

Despite Müller’s comments on brand expansion, no further details on the target markets have been revealed. But it is expected to move Asia and Latin America where Skoda is not available.

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