Volkswagen Magotan Enters China Market

Volkswagen, already buoyed by a nearly 25 percent growth in its company's China sales, has just rolled out its midsize Magotan sedan made by its FAW-VW joint venture. The new car is expected to be a strong competitor to the popular Toyota Camry in China, Bloomberg News commented.

The car, China's version of the Passat, was unveiled at the Shanghai auto show in April. It will be priced at the equivalent of $25,480, slightly cheaper than the starting price of the China-market Camry.

VW says the Magotan was developed in Germany to "fulfill all requirements of the Chinese market and be relevant to the tastes of contemporary Chinese society." The Magotan will be available with 1.8-liter or 2.0-liter engines.

Volkswagen saw its Chinese sales increase nearly 25 percent, to more than 430,000 units in the first half of the year, and the company expects sales to be up 20 percent for the year as a whole. The automaker has said it will add more than a dozen new models to its lineup in China by the end of 2009.