Volkswagen China recently introduced a locally made Golf GTI in the mainland. When hearing this news I went all smiles, and felt genuine delight which I cannot recall having experienced since I got a toy slot car race track for Christmas at the age of 12.
Readers in Europe I do not have to tell about the Golf GTI. I have not had to mention that since the late 1970s, generations of kids and adolescents in Europe have grown up with these 3 letters symbolizing speed and performance. I do not have to explain that the GTI was (and still is) a power car, a hot hatch, a rocket on four wheels, a wolf in a sheep’s clothing.
Being rather unimpressive at first glance, but providing sheer driving performance and hence, ultimate driving pleasure is precisely the success factor of the Golf GTI. Sure, there were all the real sports cars, the Porsches, Ferraris and the like, but these cars were out of reach for the normal Mr. Everyman. And there were also apparent sports cars, with sleek designs and more dynamic exterior appearances. Their driving performances were rather moderate, though, and driving experience rather deceiving. At the time when the Golf GTI was launched in 1976, Volkswagen had such a sports car in its own stable, the Scirocco: a stylish 3-door coupe-like sports car, with a 1.1 – 1.7 litre engine a little bit underpowered and therefore – excuse the expression – a “lame duck” compared to the Golf GTI which came from day one with a 1.6 litre engine and 110 hp.
For China, the upcoming GTI launch is a noticeable event. The car is supposed to come with a 2.0 litre TSI engine with a 6-speed Direct Shift Gearbox, capable to accelerate from 0 to 100km/h in 7.1 seconds. This means pure driving pleasure and emotion! Not only does Volkswagen honour its currently most important market worldwide with its iconic car model, the mainland’s number one passenger vehicle brand also suggests that the market has already attained a certain level of maturity and that China’s car consumers are ready for such a locally produced sporty version. In fact, many indicators still point to an emerging nature: 8 out of 10 new car buyers who purchase a passenger vehicle for the first time in their life choose the still largely predominant sedan body type – the typical embodiment of a car in emerging markets – whereas car financing, a growth driver in mature markets, is still in its infancy.
On the other hand, we observe a growing number of young consumers entering the market, those born in the 1980s, whose needs and expectations towards cars may be different from the first generation of car buyers. A more traditional mindset among consumers from the 1960s and 1970s suggests that the choice of a car is considerably based on functional requirements and social acceptance, while a more Western-lifestyle oriented mindset among consumers born in the 1980s favours individual pleasure and self-gratification.
Yet, while young consumers seek more individual pleasure, they do not completely abandon their values when buying a new car. Family and friends remain important, and owning a car that is accepted by one’s inner circle is essential. Harmony and decency still have their place, which is why the car design cannot be too exaggerated and distinct. At the same time, adhering to a more trendy and fashionable appearance, and expressing a dynamic personality becomes a driving factor for the new emerging consumer group. It seems to me that the Golf GTI fits well into this mindset.
With an expected price tag below 250K RMB the locally produced GTI will be considerably cheaper than the imported version which costs over 400K RMB. Still, it is quite an amount of money to pay, in particular for the young consumers. This is why we may not expect to see a whole lot of GTI on China’s streets anytime soon.
In the longer term I am sure that the Golf GTI will find its deserved clientele among Chinese car consumers, providing car enthusiasts in the mainland with the same excitement as it has already given more than 1.7 million GTI drivers around the world, and manifest its place as simply one of the greatest cars of all times.
For any further information or enquiries, please contact Klaus at Klaus.Paur@tns-global.com
