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FAW-Volkswagen completed 2.13 million car sales in 2019, and its Volkswagen brand, Audi brand and Jetta brand all achieved growth. however, in 2020, FAW-Volkswagen is facing great challenges due to the impact of the cold winter of the car market and the epidemic. In response to this year's plan, FAW-Volkswagen executives believe that this year's car market will be a "policy city", the effect of government reduction is far less than the policy thrust, so government health will not become the mainstream of the brand. It means that FAW-Volkswagen will not take price reduction measures in exchange for sales.

Affected by the COVID-19 epidemic, the car show has been postponed, car purchasing activities have been restricted, and overall sales in the car market are relatively low, both for car companies and for the car market, are faced with the phenomenon of low consumption. In view of these factors, many brand car companies try to boost sales by way of product price reduction or discount.

In 2020, SAIC Skoda has become the first brand to take official price cuts to survive, with a maximum price reduction of 24500 yuan for all its models. At the same time, SAIC enterprises also adopted offline price cuts to boost sales in May, including SAIC-Volkswagen and SAIC-GM, offering 50% discount on car purchases, no purchase tax, low down payment and other concessions.

Therefore, under the influence of multiple factors, "price reduction" has become the only way for many brands to participate in the market competition in 2020. However, FAW-Volkswagen believes that the effect of price reduction will not be obvious.

Ma Zhenshan, deputy general manager of FAW-Volkswagen sales Co., Ltd., said, "We believe that in this year's automobile market, the phenomenon of official health will not form a mainstream. All brands understand that this year's auto market is a 'policy city', and the effect of official reduction is far from the policy thrust, so official demotion will not become the main theme of major automobile brands."

In Ma Zhenshan's view, at present, the car market has to rely on policies to pull, a series of substantive policies will accelerate the market recovery. "on the one hand, the recovery of the car market lies in the fundamental demand potential, such as increasing the demand for replacement cars and the demand for first-purchase cars. On the other hand, it lies in the support policies. in addition to the current support policies for new energy vehicles, if fuel vehicles can also enjoy some substantive policies, then the car market is likely to return to the level of the same period last year, but it depends on the strength, scope and timing of the policy. "

Ma Zhenshan also said that after nearly two years of adjustment, the domestic car market has transitioned from an incremental market to a stock market, but consumer demand for private cars will continue to grow and the general trend will not change.

It is understood that the Volkswagen brand, Audi brand and Jetta brand of FAW-Volkswagen have been driving sales by the way of terminal price reduction for a long time. This time, FAW-Volkswagen executives said that the role of "official reduction" is not obvious and will not become the mainstream of the brand. It means that when competitors are in price reduction competition, FAW-Volkswagen will maintain a strong price.

In 2019, FAW-Volkswagen realized terminal sales of 2.13 million vehicles (including imported cars), an increase of 3.8% over the same period last year. Among them, FAW-Volkswagen's Volkswagen brand sold a total of 1.398 million vehicles last year, and completed the market layout of the three SUV models: sounding, song and mountain exploration. The Audi brand sold 680000 vehicles last year, after upgrading a number of major products, while Jetta was a new low-end car brand launched last year to make up for the gap in the low-end car market of FAW-Volkswagen, with a total sales of 43000 vehicles last year.

According to the plan, FAW-Volkswagen sales target is set at 2.32 million vehicles in 2020. In terms of new cars, the Volkswagen brand will launch the Tanyue Coupe, the Tanyue GTE, the eighth generation golf, the medium-term revamped Volkswagen CC, the Volkswagen CC Shooting Brake and a medium-and large-sized SUV. Among them, the internal code name of FAW-Volkswagen medium-sized SUV is VW416, which is the mass production version of the SMV concept car unveiled at the 2019 Shanghai Auto Show. The new car will compete with SAIC-Volkswagen Tuang in the medium-and large-scale SUV market.

As for the Audi brand, it has planned medium-term changes to the Audi A4L, the new Audi Q7, Audi Q3 Sportback and so on, while the Jetta brand currently plans to launch the VS7 compact SUV.

In 2020, a number of FAW-Volkswagen executive positions have been adjusted. In April, it was officially announced that Wang Shengli was appointed Deputy General Manager and Executive Director of Volkswagen Brand of FAW-Volkswagen sales Co., Ltd., responsible for the marketing of FAW-Volkswagen brand. At the same time, Duan Ning served as the Director of Public Relations of FAW-Volkswagen Brand. Previously, Duan Ning served as Director of Marketing and Public Relations of North China sales Division of FAW-Volkswagen sales Co., Ltd. The frequent transfer of senior executives means that FAW-Volkswagen will also make great adjustments in public relations communication, marketing and enterprise management.

FAW-Volkswagen sold 117000 new cars in March, down 26.6% from a year earlier, of which the Volkswagen brand sold 67600; Audi sold 40400 (including imported cars) in March; and the Jetta brand sold 9300. So far, FAW-Volkswagen terminal sales of 337000 vehicles in the first quarter of 2020, only 14.5% of the annual sales target. Therefore, FAW-Volkswagen will be very difficult this year.

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