The Volkswagen Group does not seem to be contained by the laurels that have come its way in the recent past, as news of its Seat brand being introduced in India is making the rounds. Besides firming and expanding its market share, at the same time, the company would be exposed to the advantages of economies of scale on a larger level. Thus, the Seat products would significantly serve as a tool to cut down the input costs for Volkswagen.
However, Volkswagen admitted the fact that the Spanish brand would be facing strong winds as it works upon embedding its name in the Indian auto market. Moreover, as VW and Skoda compete in the same area, the journey would become tougher. But, VW believes that counting on its unique styling; Seat will be able to grab the attention of young car buyers.
Volkswagen board member Christian Klingler tipped-off that Seat has planned it big as it would be making its debut landing in China, before tapping the rapidly growing Indian market. While Volkswagen rides high with 12.1% boost in its worldwide sales this year, on the contrary, Seat has lagged behind with a lax growth rate of 2.3%. Therefore, finding a place in the coveted markets would aid the brand in strengthening its figures considerably.
Seat gears up with a line-up that befits India in much or less every sense. The Ibiza hatchback would be placed within the Volkswagen Polo's range, while the Exeo saloon has been positioned between the Jetta and Passat. In addition, the Alhambra MPV is likely to stare at the sales of Toyota Innova and Tata Motors’ Aria.
As Maruti Suzuki India Ltd and Volkswagen parted their ways, the growth path for the latter, in the densely populated small-car market, appeared hazy. However, betting on the Up hatchback that unwrapped at the Frankfurt Motor Show of late, Volkswagen hopes to take situations under control. As a matter of fact, Skoda has already launched the Citigo, which has been pitched against the Up, and Seat, too, possesses the Mii that is expected to fall in the same category.
These models have engines and a number of components in commonality that would again help in attracting greater economies of scale. The Volkswagen Group has given a nod for a humongous investment of $86.4 billion or approximately`4.56 trillion over the coming five years.
Thus, with Seat being added to its portfolio in India in the coming time, VW will head towards dominating the first spot by 2018.
