Volkswagon
Volkswagen’s present strategy and how they r doing in current Indian market
The Indian arm of the biggest European car maker will focus more on strengthening its sales and service network and less on expanding market share at least until 2015.
Sales have slipped 20% in the six months starting April, after growing 52% in the last fiscal
Sales at the car maker, which sells automobiles including the Passat,Jetta, Vento and Polo in India, have slipped this year after growing 52% in the last fiscal. In the six months starting April, Volkswagen sales declined 20% to 30,476 units, according to the Society of Indian Automobile Manufacturers.
Volkswagen India to focus on strengthening sales
In the same period, Volkswagen’s market share declined to 2.38% from 3% at the end of the last fiscal. Between April and September, the passenger vehicle industry overall grew 7% to some 1.28 million units
Analysts attribute at least part of Volkswagen’s sales decline to the success of stronger models from rivals, including Maruti Suzuki India Ltd’s Swift, Dzire and Ertiga, and Hyundai Motor India Ltd’s newFluidic Verna.
While Volkswagen has succeeded in establishing its brand in the India market since its entry in 2008, it has not worked on back-end systems to service large volumes, said Saxena. That’ll be its focus in the next two to three years, he said. After that, the company will focus on selling more, he said.
“So, if you ask me, in the next two-three years, we would like to grow at market rates and we would like to work around a 3% market share,” Saxena added.
After its entry into India, Volkswagen’s Polo, along with Ford India Pvt. Ltd’s Figo and General Motors India Pvt. Ltd’s Beat, managed to dent the market share of companies such as Maruti and Tata Motors Ltd, but their sales slowed because of sales- and service-related issues, strong competition, and India’s slowing economic growth.
Currently, Volkswagen has about 111 dealers and it wants to add another 24 by the
The Indian arm of the biggest European car maker will focus more on strengthening its sales and service network and less on expanding market share at least until 2015.
Sales have slipped 20% in the six months starting April, after growing 52% in the last fiscal
Sales at the car maker, which sells automobiles including the Passat,Jetta, Vento and Polo in India, have slipped this year after growing 52% in the last fiscal. In the six months starting April, Volkswagen sales declined 20% to 30,476 units, according to the Society of Indian Automobile Manufacturers.
Volkswagen India to focus on strengthening sales
In the same period, Volkswagen’s market share declined to 2.38% from 3% at the end of the last fiscal. Between April and September, the passenger vehicle industry overall grew 7% to some 1.28 million units
Analysts attribute at least part of Volkswagen’s sales decline to the success of stronger models from rivals, including Maruti Suzuki India Ltd’s Swift, Dzire and Ertiga, and Hyundai Motor India Ltd’s newFluidic Verna.
While Volkswagen has succeeded in establishing its brand in the India market since its entry in 2008, it has not worked on back-end systems to service large volumes, said Saxena. That’ll be its focus in the next two to three years, he said. After that, the company will focus on selling more, he said.
“So, if you ask me, in the next two-three years, we would like to grow at market rates and we would like to work around a 3% market share,” Saxena added.
After its entry into India, Volkswagen’s Polo, along with Ford India Pvt. Ltd’s Figo and General Motors India Pvt. Ltd’s Beat, managed to dent the market share of companies such as Maruti and Tata Motors Ltd, but their sales slowed because of sales- and service-related issues, strong competition, and India’s slowing economic growth.
Currently, Volkswagen has about 111 dealers and it wants to add another 24 by the