A Rose by Any Other Name

Just as the JLR/Chery JV is taking the Freelander nameplate and building it into a brand, VW Group deployed this strategy seven years ago. The Jetta compact sedan had a strong following in China, and VW Group decided to leverage it to create a new brand targeting young, first-time buyers. The first Jettas were (of course) the original Jetta sedan, followed by several rebadged SEAT SUVs.

Now, at this year's Beijing Motor Show, Jetta is being reinvented as a largely NEV (PHEV, EREV, and EV) brand. The somewhat unimaginatively named X concept is a compact electric SUV with a rugged exterior design that bears a passing resemblance to Dacia's Duster and Bigster. The production vehicle, due later this year, is expected to start at around USD15,000, and will be followed by four other models over the next two years (one ICE and three NEV). Target volume in the long term is between 400,000 and 500,000 units, or close to three times Jetta's peak volume up to this point--a very aggressive target.

One might ask how many brands VW Group needs in its China portfolio (especially with AUDI getting off to a rough start). But with Skoda pulling out of China, Jetta offers the company an opportunity to keep the VW brand's slightly more premium market positioning. With so few details, it's a bit early to predict the first new Jetta's success, but with local brands continuing to raise the bar across all price points, it won't be easy to stand out.

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