Added by Nigel Shelbourne on November 1, 2012
Volkswagen plans to introduce new models from its global line-up in India to increase sales to retain its 3% market share in India according to a top executive.
“We are investigating and checking the global portfolio to strengthen the Indian line-up of cars and SUVs. We haven’t finalized anything yet, though some renewed focus on existing compact cars and sedans is being worked out,” said Arvind Saxena, managing director, Volkwagen passenger cars business.
Volkswagen recently unveiled a new compact SUV called Taigun in Brazil and its entry into other emerging markets like India is keenly awaited. Though the German carmaker has delayed plans to introduce its smallest car brand UP! in the Indian market due to pricing issues, some refreshments are likely to come soon.
Unlike most car makers, Volkswagen gradually lost momentum, after a good start in India, due to service issues with its dealers. Its sales declined 20% to 30,476 cars for the first six months of the current fiscal and its market share dropped to 2.38%, down from 3.5% in early 2011.
“We are looking at restructuring our operating (business) and there is much scope to improve customer interface in our dealerships and arrest dwindling sales. India is a strong player in Volkswagen’s global strategy to become the world’s largest carmaker by 2018. We will grow volumes irrespective of market conditions with some aggressive excitement in products and a sharper focus on Indian customers,” added Saxena.
According to auto industry insiders, the German auto giant plans to debut a budget brand – after its partnership with Japanese Suzuki Motor Corporation – to capitalize on emerging markets like India.
Volkswagen (VW) is a German automobile manufacturer founded in 1937with three cars in the top 10 list of best-selling cars of all time – the Volkswagen Golf, the Volkswagen Beetle, and the Volkswagen Passat. Volkswagen has manufacturing or assembly plants in Germany, Mexico, Slovakia, China, India, Indonesia, Russia, Brazil, Argentina, Portugal, Spain, Poland, Bosnia and Herzegovina, and South Africa. The company, in 2011, was named in the top 25 largest companies in the world by the Forbes Global 2000.