"Jetta" will launch in China as an entry-level brand of its own with a sedan and two SUV models, Volkswagen has announced.

An ambitious plan sees 200 dealers coming online by year's end, plus strategies including mobile sales trucks and a shopping-mall presence.

Jetta sedans and SUVs will be targeted at young, first-time buyers outside of China's main metropolitan areas.

Volkswagen announced today that the Jetta name will be spun into an entry-level sub-brand in China that is intended to let the automaker better compete with products built by domestic Chinese automakers. The move will also allow the Volkswagen brand name to move further upmarket to cater to luxury buyers.

Despite China's recent auto-buying boom, areas outside China's largest metropolitan areas still report low car-ownership levels. Here, Chinese domestic brands dominate, and most customers are young, first-time buyers. Volkswagen is seeking to capitalize on such markets with car and SUV models at reduced cost through a new dealership network.

Volkswagen

The decision to use the Jetta name stems from that model's enormous success in China. "It has brought mobility for the masses, just like the Beetle once did in Europe," said Jürgen Stackmann, VW board member, in a press release. "Developed by Volkswagen and built in China, the Jetta China has placed China on four wheels. To this day, it is one of Volkswagen's most popular models in China—a real icon."



The brand will launch with a sedan model and two SUVs, all three of which will be produced in China in partnership with Volkswagen's joint venture partner First Automobile Works (FAW). The sales force will also be utilizing digital showrooms, shopping malls, and mobile sales trucks to attract potential buyers. By the end of the year, Volkswagen aims to have 200 Jetta dealers up and running across China.

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