VW is going to launch their new Phideon flagship model in China this Friday, which is aimed to compete with other established premium car makers in this huge market, including Audi, Mercedes and BMW.

The German company is targeting a clientele that looks for a premium, yet discreet model as the market trend moves towards to less flashy cars.

“Shiny, blingy showing-off is no longer the behavior in the (larger) cities,” said Holger Santel, vice president of sales for SAIC Volkswagen to Reuters. “Customers are increasingly saying “I don’t want Audi, Benz, BMW. I don’t want to show off.’”

Why these brands specifically? Because VW displayed the new Phideon next to the Audi A6, BMW 5-Series and the Mercedes E-Class at a media event in Shanghai, revealing their expectations for their new flagship to compete with these models.

Another reason for VW wanting the new Phideon to succeed in China is that it will help the brand move on from its mass-market image and even help in increasing their overall sales there.

Unlike VW’s previous flagship, the Phaeton, the new Phideon is a China-only model for now, with the company not ruling out yet the possibility of exporting it to other regions in the future.

The range-topping 3.0 TSI 4Motion version is powered by a supercharged V6 petrol engine with 295hp (300PS) while entry-level models are powered by a 2.0-litre TSI unit. Plug-in hybrid versions are also on the cards. The new VW Phideon is priced from 359,000 yuan (around $53,000 in current exchange rates).

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