In cost cutting mode due to muted sales in the country, Volkswagen India has closed down its two of its regional sales offices in Delhi and Bengaluru. The German brand will be concentrating more on exports so as to utilize capacities. It is also to be noted here that VW India is the third largest profit making car company in the country.
Volkswagen commenced its operations in India in 2007 with production getting off to a start in 2009. Its production unit in Pune has capacities of 1.3 lakh units per annum, which is roughly about 10,800 units per month. However in the present financial year, starting April 2014, production has been at 89,000 units, or 8,900 units per month. Of these, 60% were exported. Which means about 35,000 cars were sold in India in the past 10 months.
The closing down of two Volkswagen sales offices in Delhi and Bengaluru will result in operations being shifted to the company’s Mumbai head office. Some employees have been transferred to the Mumbai office while others will be working from home, and handle Delhi and Bengaluru operations. This new step will allow the company to redefine strategies and save on operational expenses.
In the mean time, to boost sales and entice new buyers, till February 28, 2015, Volkswagen India has also revealed certain customer incentive programs. Customers can take advantage of discounts and benefits being offered on both the Polo and new Vento models. Available through Volkswagen Finance, interest schemes are being offered on Polo and Vento from 7.99% while the Polo will also be available at zero down payment along with free 1st year insurance and exchange benefits.
via Economic Times