As per new industry figures, the Indian auto market may grow only by 12-14 per cent in the current calendar year as compared to the 30 per cent growth rate achieved last year.
Mr Neeraj Garg, Director of the Volkswagen Passenger Cars Division of Volkswagen Group Sales India, expressed his concern over the future in the Indian auto market with increased lending and fuel rates and other macro-economic factors affecting the hitherto rosy picture for automakers in the country.
But when asked about Volkswagen’s prospects for the current year, he promptly replied that his company’s sales would be much higher in 2011. The German giant is making huge numbers in the subcontinent with 32,500 cars sold in 2010 and 39,366 units already sold out in the first six months of 2011. Asked if the company will be able to sustain those numbers till the year end, he said that it’s difficult to predict but didn’t discard the possible of a slow-down.
He admitted that the customers are delaying purchase and the company is getting fewer bookings for its cars. "We have already launched Passat. We will be launching the new Jetta in the next few months", Garg told the gathering, in an attempt to address these concerns.
He also stated after thorough research work, the company is in the process of finalizing its plans to enter the business of pre-owned cars. Besides increasing used car sales, the sharp rise in petrol prices has started to show its impact with buyers switching from petrol vehicles to the diesel ones.
Garg further added that last year about 62-63 per cent buyers of Volkswagen Polo had gone for petrol versions, while this year it has been 50 per cent each. The similar holds for the Vento model also.
