In five years of its itinerary in India Volkswagen has been able to capture only an insignificant market share in India. However, it has been learnt that the company is now chalking out a new strategy to tighten its grip in domestic market. According to media reports, Volkswagen India is considering launching new products in India, the current portfolio includes pricier cars. Apart from that VW India range lacks variety as the car maker primarily offers premium sedans and SUVs. Since India is a price sensitive market, hence Volkswagen is evaluating options to come up with competitively priced cars.
The current market trend shows likability for compact SUVs and sedans in India, therefore in tandem with the current trend Volkswagen is thinking on the lines to bring in a compact SUV and a compact sedan in India. However, the company has made it clear that it does not intend to incline towards the entry level segment that comprise of compact small cars like Maruti Alto etc. The new vehicles are likely to be launched in India within two to three years. Besides introducing new vehicles, VW is also contemplating to widen its sales network and intensify localisation to bring down cost of its vehicles.
Sources have revealed that the company is planning to make an investment of staggering $250 million in coming five to six years in order to achieve its goal. This would gradually help the German auto giant to revitalize its sagging sales that has been dropped substantially in last two years.
Under the enhanced localisation agenda, the company is eyeing to manufacture various car parts in India at its manufacturing unit including engines and transmissions. The idea is to increase localisation from current 70 per cent to 90 per cent in coming time. India is an exponentially growing automotive market with great potential; hence auto makers are ready to invest in the market despite current slowdown.
