Volkswagen lowers target owing to competition from Maruti and Hyundai
The economic slowdown which started in 2011 continues unabated to this date, making automakers rethink their expansion strategies in the Indian auto sector. One of the first automakers to scale down operations is Volkswagen India Pvt. Ltd, a company on the verge extensive expansion plans that has had to tone down strategies significantly.
Out of the company’s five brands which include VW, Skoda, Audi, Porsche and Lamborghini it is only Audi that has emerged the strongest in India and able to maintain a strong position in the luxury market. In 2013, VW Group sales fell by 19% to 92,529 units as compared to sales in 2012 which stood at 1,14,045 units. Ever since then, VW volumes have been falling while for Skoda as well, volumes have witnessed a drastic dip in demand.
Volkswagen India has lined up new investments of about Rs 1,500 crores which will see the launch of new cars with increased localization content. This will be a big step in giving their consumers cars at a competitive pricing. Not only this will make VW cars more affordable, new investments will also improve after sales experience at dealerships.
via Times of India
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