Why doesn't JAC Volkswagen use the Volkswagen logo?

[PresleyRose]

JAC Volkswagen does not use the Volkswagen logo because foreign automakers are only allowed to have two joint ventures in China. Here are the relevant details: 1. Volkswagen: Volkswagen offers a convertible with both an electric hardtop and a sunroof. Volkswagen has also incorporated an electric sunroof into the convertible roof structure, allowing owners to freely choose between convertible mode, hardtop coupe mode, or just the sunroof mode under different weather conditions, making it convenient and quick. 2. SOL: The brand formed by JAC and Volkswagen is called SOL, which was established on April 24, 2018. It is a new brand under JAC Volkswagen Automotive Co., Ltd. The brand's first model is the E20X, which was launched at the 2018 Beijing Auto Show. The model is a pure electric A-segment vehicle, an SUV type, with a comprehensive range of over 300 kilometers.

[McManuel]

I've always thought that JAC Volkswagen doesn't use the Volkswagen logo mainly due to brand strategy considerations. Sehol is Volkswagen's economy brand specifically designed for China's electric vehicle market. The Volkswagen logo globally represents premium traditional fuel vehicles, and using it on entry-level EVs might confuse consumers and potentially dilute Volkswagen's core brand image. With fierce competition in China's EV market, Volkswagen can quickly attract budget-conscious buyers through the independent Sehol brand, offering affordable prices without compromising quality. The joint venture agreement also supports this strategy, with Volkswagen providing technology while keeping brands separate. This mirrors other joint venture cases like BMW and Great Wall's Spotlight Automotive, which also avoids using the BMW logo to prevent core value dilution. I believe this approach clearly segments the market, protecting the main brand while focusing on local needs.

[McLeonardo]

I think the main reason JAC Volkswagen cars bear the Sehol badge is a matter of market positioning. Sehol targets ordinary families and entry-level users with affordable and budget-friendly pricing. If they used the Volkswagen badge, people might assume it's as expensive as Volkswagen's premium models, when in reality it's a high-value option. Having an independent brand reassures consumers to buy without worrying about being mistaken for a luxury car with expensive maintenance. Local brands enjoy high acceptance in the Chinese market, making marketing efforts simpler. Volkswagen aims to expand into the economy EV segment, and the Sehol badge is a smart strategy—clear differentiation prevents buyer confusion.

[LaLaila]

From the perspective of the joint venture agreement, JAC Volkswagen not using the Volkswagen logo is stipulated in the contract. Both parties protect their respective brand rights and interests, with Volkswagen avoiding its main brand being dragged down by entry-level products. It is common to handle intellectual property separately, and consumers will not confuse brand loyalty. This approach is safe and risk-free.

[NicoleAnn]

From a technical perspective, Sehol is developed based on JAC's electric vehicle platform, with Volkswagen providing partial support such as motor technology. The platform differs from Volkswagen's MEB, and the branding emphasizes the source differentiation. The new brand highlights localized innovation features, making it easy to market. Consumers can immediately recognize its technical background.