Markets

Direct Investment

Highlights

Trends/Policies

Old car models dominate sales in August

By Li Huayu (chinadaily.com.cn)
Updated: 2006-10-12 08:58

About two-thirds of the year 2006 has already passed. Many enterprises were hopeful that September and October sales would boost the sales performance for the year. The two months were characterized by price cuts and new car launches. In August, First Automotive Works Corp (FAW) launched the Besturn, followed by Changan Ford with the hatchback Focus; Dongfeng Nissan, the Sylphy; Tianjin FAW Xiali, Weizhi; FAW Haima, Family II; and Chery, the QQ6.

However, the new models did not contribute much to August sales. In fact, the sales in August and in the period from January to August of this year were both dominated by models that have long been on the market, such as the Jetta, launched 14 years ago; the Santana, over 20 years ago; the Xiali, 20 years ago; and even the ones with a comparatively short history - the Excelle and the QQ, three years ago. How could these models achieve good sales?

First of all, let's take a look at the Jetta – the leader in August by sales. In the Chinese sedan market, the Jetta has become a household name. Since the first domestic Jetta rolled off the production line in Changchun, Northeast China's Jilin Province, the model has achieved good results over the past 14 years. In 1996 there were no major problems with the Jetta, even after 600,000 kilometers of driving. To FAW Volkswagen, the achievement was more effective than any advertisement, and it left an impression on consumers that the Jetta was solid. More importantly, the improvements made by FAW Volkswagen on the Jetta also ensured the model's continued market prosperity.

......

The full text is available in the September Issue ofAutoChina.