Why doesn't JAC Volkswagen use the Volkswagen logo?
2 Answers
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.
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.