China is a vast country. Jetta is one of the most popular cars from VW's jointventure, FAW-VW. Jetta's easy maintenance and reliability assure a customer base of private clients, taxi fleets(almost 25% demand), and some government orders. FAW-VW launched its Chengdu plant for production of the Jetta. Chengdu is expected to guarantee more supply of the Jetta for western China wehre budget cars are popular.
Now it is getting clear that demand from small and mid-size cities is growing steadly. This trend will help Jetta's sales in the long term. The taxi demand for replacement will also benefit its sales.
With all the factors considered, Jetta's lifecycle will be longer than VW expected. And this trend will help after-sales market generate more sales on spare parts.
More serious about China's passenger car market? please go to www.kpmg.com.cn. Read "Momentum: driving forces in China's car maket" in Virtual library section.
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