Volkswagen Group target 2018 and how the Indian auto market will contribute in terms of sales and growth

Volkswagen has great plans for their success in India. The group currently offers about 21 models and sold 1,11,623 cars during 2011, up 109.3% over sales during 2010. VW Group hopes to be largest auto maker in the world by 2018 and is confident of the fact that Indian will play a major role in helping them in achieving that aim.  VW entered India in 2007 and has since offered Passat, Jetta and Polo.  VW Vento followed soon giving the company a head start in achieving their goal.

Double digit and triple digit growth ensured that the company gained momentum and sales were at just 7000 units during 2011 which was just a tenth of Maruti Suzuki sales in India. 2012 has also begun on a not so promising note for Volkswagen.  Single digit growth in January followed by a decline in February was seen by Volkswagen.  The month of February was otherwise the best where sales were concerned for the rest of the auto sector.

Though it was thought that Polo would be a crowd puller, it was actually Volkswagen Vento that was an outright success.  Volkswagen Vento diesel was launched just at the time when diesel cars were much in demand following rising petrol prices.  Vento saw immediate success in 2010 as it competed with Honda City and SX4 for a top position in its class.  But this state of euphoria did not last long as Hyundai brought in Verna and this took the place of pride above Vento.  Skoda Rapid too was launched which also took precedence above VW Vento.

Now how Volkswagen Group will reach their goal by 2018 is obviously going to depend on startegic moves and sales targets, and the Indian auto market too will see rapid changes to ensure this market contributes as required. It’s certain, there will be more cars, increased production, continued low penetration points, increased car variants, growth in dealership network amongst launches and offers. Of course increased competition will see Volkswagen, Skoda, and Audi work with increased speed.

The 2012 Union budeget announcement for automobiles in India hasn’t favored all and could even dent hopes of putting Volkswagen on the rushlane rightway in India. In response to the 2012 Union Budget, Member of Board and Director Volkswagen Passenger Cars, Neeraj Garg had this to say, “The duties announced will definitely act as a growth deterrent for the overall auto industry. Moreover, it becomes difficult to plan our long and mid term strategies in such a volatile market.”