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Skoda skips to the top tier of compact, subcompact segments
By Zhang Ranran (China Daily)
Updated: 2009-07-13 07:45
Encouraged by a strong first-half performance, the Czech brand Skoda owned by Volkswagen Group expects its China sales to grow by almost 50 percent this year. The carmaker said it plans to sell more than 100,000 vehicles this year in China, up from 59,000 units in 2008. Skoda's sales in the world's most populous nation surged by 46.9 percent over the same period of 2008 to 48,483 units in the first half of this year, including 35,836 Octavia Mingrui compact sedans and 12,647 Fabia Jingrui subcompact cars. The two models are made by Shanghai Volkswagen (SVW), the German automaker's joint venture with SAIC Corp. In June alone, Skoda's sales more than doubled to 10,016 units from a year ago, a new monthly record. Helped by projected sales of 7,500 Octavia Mingrui units, 2,500 Fabia Jingrui vehicles and the launch of the mid-sized Superb Haorui's in the latter half of the year, Skoda is expecting to sell more than 100,000 units in 2009. Following its launch in June 2007, the Octavia Mingrui has risen rapidly to become one of the most popular models in the compact auto segment. Even with more than 15 improvements in its latest configuration, Skoda's marketing for the model continues to target "unassuming buyers who pursue a quality life and efficiency, and strive for a balance between the contemporary and the traditional", according to company press releases. Its total sales have reached almost 130,000 vehicles over the past two years. Twenty percent of Octavia Mingrui's buyers are introduced to the model by current owners, according to company figures. Skoda's first China-made model, the Octavia Mingrui's customers are mostly from Beijing, Shanghai, Guangzhou, Zhejiang and other areas with well-developed sales networks. The Fabia Jingrui also continues to increase sales, with 2,500 units sold in June contributing to the 12,647 vehicles purchased in the first half of the year. It edged into the top four in the subcompact car market in February and has remained there. The company says robust sales have come through accurate market positioning. Using the slogan "Believe in your life" and highlighting its five key product benefits - seeing, riding, driving, using and enjoying - the model is aimed at young customers between 25 and 34 years old with a higher educational background. As the most updated subcompact and showing its German lineage, the Fabia Jingrui is hot among realistic young buyers due to its design, comfortable interior space, advanced technology and safe driving quality. In early June, the Fabia Jingrui was top in three stages of the 2009 China Rally Championship at Nanjing. Following with the championship, on June 22, the carmaker launched three new Fabia models equipped with the state-of-the-art 6-speed Tiptronic transmission. Record sales by the Octavia Mingrui and Fabia Jingrui confirm the SVW strategy of building multiple brands. Successful promotions Promotions such as support for bicycling sports, its corporate social responsibility program and presence at the Beijing Olympics torch circuit have helped Skoda increase its brand competitiveness. The image of the Octavia Mingrui was also enhanced by its appearance in the films "Crazy Racer" and "Firewall 5788". In 2009, Skoda started a new cooperative business model with home furnishings chain retailer Redstar Macalline to utilize an overlapping customer base. On show at Macalline stores, the Octavia Mingrui and Fabia Jingrui help reinforce the joint branding concept of "Home and Car", while a VIP service will bring the cars to customers' homes for a test drive. People can touch them in the exhibition venue, possess them by the lucky draw and get more information about the two top cars by listening to lectures at the Macaline stores. The successful promotions in 15 cities including Beijing, Shanghai, Chengdu, and Zhengzhou greatly have helped the Octavia Mingrui and Fabia Jingrui increase their brand influence and competitiveness, and transfer the Macalline's current customers to Skoda's potential customers. Next for Skoda is the launch of its Superb Haorui model to enrich its product range. SVW also plans to expand the number of its Skoda showrooms to 230 by the end of 2009. (China Daily 07/13/2009 page16) |
