September 29, 2024

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Volkswagen may expand JETTA-brand outside China

Volkswagen is looking to bring the Jetta-brand of entry-level cars to markets outside China.

Those familiar with Volkswagen will know that Jetta is a compact sedan model sold in markets around the world. The said model with the exact name isn’t sold in China but they still have Jetta there. The difference is that JETTA is a car brand which is a joint venture between the Volkswagen Group and Chinese FAW Group.

Launched only eight months ago, the JETTA brand is a value-oriented brand in the world’s most populous country. According to a report by Automotive News Europe, the VW Group is exploring options to expand the brand to other markets around China. The company has already claimed about 1 percent of the Chinese car market as their models are positioned for younger, price-sensitive buyers. These buyers are also those who are expected to purchase cars in order to avoid public transport due to the coronavirus pandemic.

“The successful start has of course also sparked interest from other markets in the Volkswagen world,” Harald Mueller, the brand’s president said to Automotive News Europe.

Like Nissan and its Datsun brand, JETTA was intended to create entry-level models for Volkswagen in China as other lower-priced VW Group offerings only have limited name recognition. Jetta’s current lineup comprises two SUVs based on Seat models, also owned and manufactured by VW, and one sedan based on the previous generation VW Jetta, built at VW’s joint venture factory with FAW in Chengdu.

There was no mention as to what markets the company is planning to expand to but it will most likely be Russia, and Southeast Asian countries such as Thailand, Indonesia, and even the Philippines. These markets are where Chinese cars are slowly gaining popularity.

The Volkswagen Group currently has a total market share of around 20 percent making it one of the largest car companies in China.

Images from Volkswagen.

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