CHINESE-MADE Skoda models officially took to the road yesterday as Volkswagen AG tries to regain market share in the world's second largest auto market.
Shanghai Volkswagen Co Ltd rolled out the Skoda Octavia under a pact signed with Skoda Auto Corp, the Czech Republic-based unit of Volkswagen, in 2005.
Shanghai VW said the new mid-size saloon would be equipped with Tiptronic six-speed transmission as well as VW's most advanced 1.8-liter TSI engine, which is being equipped on Skoda models worldwide for the first time.
"The introduction of Skoda Octavia is an important part of Volkswagen's strategy in China," said Winfried Vahland, president of Volkswagen China Group. "We are having the right model at the right time.
The Chinese market enjoys very strong growth and we will continue to bring in the latest technology to meet buyers' growing demand. "
The venture, formed by Europe's largest car maker and Shanghai Automotive Industry Corp, will sell the model from 139,900 yuan (US$18,168) to 185,900 yuan, depending on engine capacity. Another 1.6-liter version will also be launched in the second half of this year.
The Skoda Octavia is one of Volkswagen's 14 new models to be introduced to China by 2010 to boost sales and win back the market from rivals like General Motors Corp and Toyota Motor Corp.
Skoda Octavia has received more than 5,000 orders since it took part in the 2007 Shanghai Auto show a month earlier, said Chen Zhixin, general manager of Shanghai VW.
Shanghai VW has set its Skoda Octavia sales target at 40,000 units this year.
It also aims to gain a three percent market share within three years, the company said earlier.
Analysts said the Skoda will help Shanghai VW compete in the mid-class segment, especially after Toyota launched its latest Corolla sedan a week ago.