Volkswagen looking to bring Seat to India
In a quest to magnify its presence in India, Volkswagen Group is planning to introduce its brand Seat in the country. Introduction of Seat products in the Indian subcontinent will lead to greater economies of scale for Volkswagen. The move will lower the operational costs and result in increased market share.
Seat, a Spanish brand, is all geared up to make its debut in China, after which India will be the target for the brand. On the performance front, Volkswagen grew by 12.1 per cent this year, whereas Seat registered slower growth rate of 2.3 per cent. To fuel the sales of the later, entry in emerging markets like China and India is on the cards. Seat brand for India will be the models such as Ibiza hatchback, Exeo saloon and Alhambra MPV.
Volkswagen’s immediate progress in the high-volume compact-car segment in India has already suffered due to unfriendly relations with Maruti Suzuki India Limited. With Seat Mii, Volkswagen will get a gateway to the compact car segment. Gaining market share in emerging markets, Volkswagen Group is eyeing to become leading passenger car maker by 2018. To ascertain the same, Volkswagen Group is likely to make an investment of $86.4 billion in next five years. The investment for new plants, car models, R&D will be done for the brands, which include Volkswagen, Audi, Skoda and Seat.
The automaker's foremost worry is the overlap between Volkswagen and Skoda products, which will make it difficult for the Spanish brand to create a space for itself in India. However, Volkswagen is confident about Seat’s distinctive styling and Mediterranean character that will attract youth.
