Volkswagen has revealed that it plans on doubling the size of its dealer network in China by the year 2015.
Faced with a recessing car market in most of the country's big cities, company executives hope that opening more dealers will make the firm's cars available to buyers that live in rural parts of China.
If it is able to meet its ambitious goal, the German company will have roughly 1,900 Volkswagen dealers, 500 Audi dealers and 500 Škoda dealers scattered across mainland China by the middle of the decade. Spain-based SEAT is also present in China but it will continue to sell most of its cars through Volkswagen dealerships until its sales increase.
To accompany the increase in dealers, Volkswagen plans on launching several new models in order to fill as many market niches as possible. In 2015, the group hopes to offer 33 locally-built models and 43 imported ones.
Dealers are not convinced that Volkswagen's plan will work because they fear that it will lower their profits instead of providing a sales boost.
"Having new dealers in a local market may dilute the profits of the current ones, especially if the market is already saturated," said analyst Zeng Zhiling in an interview with The Global Times.
Photo by Ronan Glon