Volkswagen to invest $105 billion globally over the next 6 years, $19 billion in China alone
Volkswagen is aiming for the No 1 spot in the auto industry, for which VW will be investing more than $105 billion over the next few years. Of the total $105 billion, $19 billion will be invested in China alone, as the auto industry in China is set to post double digit growth figures over the next decade.
China not only buys the highest number of cars today, but their auto industry is also the fastest growing in the world. Back in 2010, China overtook US as the largest car buyer in the world. China has a manufacturing capacity of approximately 17 million cars as of today and this is going to increase to 31 million units by 2013.
Volkswagen plans on playing a bigger role in China as winning the Chinese auto industry alone will increase their chances of becoming a global leader by 2018. Volkswagen Group will be launching as many as 50 new car models and increase their manufacturing capacity to 3 million units annually in China within the next 4 years. After Toyota Motors slipped this year due to natural disasters, Volkswagen Group is the largest car manufacturer in China, followed by General Motors, Nissan Motors, and Hyundai.
This year Volkswagen has sold 6.8 million cars globally between Jan – Oct period, which is an increase by 13.8% over the same period last year. 5.43 million vehicles were sold in N America while 2.15 million were sold in Asia Pacific region, 1.89 million of which were sold in China alone. Volkswagen’s aim of selling 8 million cars globally and 2 million cars in China, seems to be on course.
VW will be increasing their workforce to half a million from the current 435,000 by 2018. This year itself, VW will add 7,500 employees and another 44,000 employees will be hired by 2012. VW Group’s market share in the global auto industry stands at 12% as of today, while that of GM’s is at 12.2% and Toyota’s is at 9.7%. Market share of Toyota Motors dipped drastically this year, but analysts believe they will bounce back next year and achieve a market share close to 11%.