Despite the fact that VW invested close to INR 4,000 crores into the Pune plant, they are yet to match the growth rate at which Indian auto industry is growing. Now, in a bid to enhance their position, Volkswagen is planning to launch new cars, specific to the needs of car buyers in the country.
The three segments which are expected to grow the most in the next few years are entry level hatchback, compact sedan, and SUV. Cars in these three segments get the most attention and sales in India. Many car makers have planned to launch new cars in these segments. This includes Honda, Maruti Suzuki, Mahindra, Hyundai, and Renault.
It is now revealed that, Volkswagen is working on an entry level sedan, a mini SUV and an entry level hatchback. The sedan will compete with the likes of Tata Zest, Maruti DZire, Honda Amaze, and Hyundai Xcent. New VW hatchback is for rivalling Maruti Swift, Tata Bolt, Hyundai Grand i10, and Chevrolet Sail, while the compact SUV is to compete with Ford EcoSport, upcoming Mahindra S101 and Maruti XA Alpha.
Models such as Polo and Vento failed to create the desired impact on the Indian car segment as its pricing could not match that offered by others in the industry. VW has learned from their experience and is now working on launching affordable cars. Apart from launching cars in the right segment, they are also going to invest into increasing the localization content in their cars, as they try to meet 90% localization.
via Economic Times