(Yicai Global) Feb. 27 -- Volkswagen Group, will spin-off its Jetta range of mid and low-end car models as an independently operated brand in China, targeting younger consumers in the country.

The German auto giant will run the brand through its joint venture with state-owned carmaker FAW Group, Harald Mueller, general manager at the unit, told Yicai Global. Jetta will bring out two sports utility vehicles this year, which will be produced at the JV's facility in Chengdu, capital of western Sichuan province.

The groundwork for the brand is already underway and a dealer system has been established made up of more than 200 distributors. Jetta will also share Volkswagen's Chinese after-sale services system.

The brand's models will also feature Volkswagen's standard technology such as the Modular Transverse Matrix platform and the EA211 engine series.

Landing in the Chinese market as early as 1991, Jetta models have achieved total sales of 4.2 million in the country as of the end of last year.

Jetta's launch as an independent brand will help VW deal with flagging sales in the country's auto market. China posted its first decrease in both auto production and sales in 28 years in 2018, falling 4.2 percent and 2.8 percent, respectively. The decreases widened to 12.05 percent and 15.76 percent, respectively, last month.

The brand aims to take advantage of the promising mid-to-low-end market, which is mostly occupied by local brands at present, though its profit margin is lower than those in other markets.

Setting up a new brand can reduce the prices of similar products and improve the configuration of vehicles at the same price, pointed out Fang Yinliang, global partner at consulting firm Roland Berger. The success of Jetta as an independent brand also depends on whether its positioning is accurate and whether its after-sales services can remain at VW's current level, he added.

Editor: William Clegg