We discussed it just a few days ago that how Skoda has almost lost its market in India and which does affect its mother brand, the German Auto Giants we call Volkswagen. But getting more inside of the whole story, we got to know that it’s not just Skoda which has failed the big German player in India, but it itself has not been a very successful deal for the Indian market. As we managed to talk to an official about the prevailing difficulties against the super brand in India, he again pointed towards the crucial market conditions against them to sell their products up to a level they expected.
The official also told us that he knows it well that their products are par excellence for the Indian market on an overall quality and assessment level, but even after that they have failed to gain numbers then that is due to their considerably high pricing of the products against the market tamers like Hyundai, Honda and Maruti etc.
And so finally, to rectify this fact for further loss, Volkswagen India has decided to further upgrade its 4000 Crore Pune plant by investing further 1500 Crore for a total localization of the whole production. This will be profitable for the company as they would be able to make good quality cars still, and that too in totally controlled costing as 90% of its production needs will be fulfilled here only.
The company revealed that like other rival brands, they also wanna enter the Compact market which is really a hot segment in India right now, and that’s why we are told that VW may roll up some new additions to its fleet anytime this year, including a budget hatchback, a compact sedan and a compact SUV or Crossover vehicle. Right now, the budgeted market tamers would surely be the Dzire from Maruti in Compact Sedan segment and Ford EcoSport in Compact SUV segment, but it would be really very delightfully interesting to see how this big German player throws a competition against the already established gamers.
Apart from that, Volkswagen also have to take care of the upper segment of cars where its VW brand fails along with other brands which work under it i.e. Porsche, Lamborghini, Skoda etc. while only Audi is the brand from VW which is making good profit in the market right now.
Not just the localization and budgeting its cars will help VW save its position, but doing it with keeping the German Standards and quality in mind would also be have to achieved for which it is currently known.
Keep looking this space for more updates on the Automobile World.