Since the operation of the North China Base, located in Tianjin, on May 18th this year, FAW Volkswagen has five domestic bases already. The annual output will reach 2.4m units in 2018, increasing 60% with the current capacity. Besides, six SUV models are expected to be put into market gradually to further improve its product structure. After the operation of North China Base, FAW Volkswagen will have more diversified products and wider market coverage to better meet the market’s and consumers’ demand on high-quality products and improve consuming structure. On the day of operation, Xu Ping, President of China FAW Group, said that, “The operation marks that the cooperation between FAW and Volkswagen has stepped into a new phrase. Depending on powerful supports of all governments in Tianjin, FAW will strive to construct the North China Base into a regional benchmarking enterprise to promote the upgrading and transformation of Tianjin auto industry.”

 

It’s expected that FAW-Volkswagen will own six industrial bases in 2018, increasing 60% annually in output. The Northeast Changchun Base, Southwest Chengdu Base, South China Foshan Base, Foshan Project II completed in 2017, East China Qingdao Base completed in 2017, and North China Tianjin Base completed in 2018 will produce 660,000 units, 540,000 units, 300,000 units, 300,000 units, 300,000 units, 300,000 units respectively. Until 2018, the five bases will be completed and put into production.

 

According to the current information, Volkswagen will launch three SUV models in the future, which are small-size “cheap” SUV, compact SUV and middle-size SUV respectively, to make up its short board in the SUV market. The small-size “cheap” SUV will be priced at RMB 80,000 to 110,000, targeting at three or four tier cities. Audi will also launch three SUVs, including Q2 small-size SUV, Q5 middle-size SUV and Q6 middle-size crossover.