Sagitar: Volkswagen aims at achieving profits from China this year

Sagitar: Volkswagen aims at achieving profits from China this year

Volkswagen AG is the biggest foreign automotive brand in the Chinese market and the company is now aiming at cutting costs and launching new vehicles to finally show some profits from their Chinese subsidiary.

China also happens to be Volkswagen’s most important market outside their home market of Germany. The company had operating losses of 119 million euros in 2005 and has launched a new model named Sagitar here in china.

Sagitar is a compact car, priced between 173,800 yuan ($21,725) and 216,800 yuan each and it would be taking on Ford Motor Co.’s Focus and Mazda Motor Corp.’s Mazda6.

Volkswagen is seeing their market share dwindling in China and needs this model to become a hit to gain back the lost confidence in the consumer. The company’s market share fell below 20 percent for the first time since 1985 in china last year and is now aiming at improving their performance in the coming months.