Volkswagen to introduce Tata Zest & Ford EcoSport rivals

Volkswagen is looking at increasing its presence in Indian market by introducing new products in two increasingly popular segments. Compact SUV and Compact Sedan spaces are fiercely attracting buyers; Volkswagen to enter in 2 to 3 years.

Volkswagen-Taigun-SUVCodenamed Polo Stuffe, VW’s sub-4 metre sedan will not be a Vento that received Superman punch from rear, as seen in case of Maruti Swift Dzire. “It will be a car of its own”, said Mr. Michael Mayer, Director of Volkswagen Passenger Cars India, to Economic Times.

Recently announced investment of Rs. 1,500 crores ($250 million) will fuel above and new projects for next five to six years. Volkswagen India will increase local content from about 70% to 90% to lower costs and be more competitive in market. Production capacity will also be increased from 1.3 lakhs to 2 lakhs in coming years.

Drop in market share from 2.4% to 2.1% could have prompted the German automaker to take serious steps in growth, especially where there is potential. Volkswagen however will not pick a fight with Maruti Suzuki and Hyundai in entry level hatchback segment, as it would be difficult to stick competitive price tag and may also put VW’s global premium image into jeopardy. VW owns 10% share in Polo & Vento segment, Mayer targets same percentage in overall market in next few years.

Mahesh Kodumudi, president and managing director of Volkswagen India did not reveal timetable of expansion and launch plans, but new cars can be expected by 2016.

Also read - Volkswagen plans 7 new cars for India by 2016/17Volkswagen Polo Facelift vs Maruti Swift vs Hyundai i20 spec compare.

New Polo launch picture (2)Via – Economic Times