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VW India goes from loss to profit making in just 7 years

Volkswagen India Plant Photo

Volkswagen is amongst the few foreign auto companies in India to have written off their losses.

Despite low sales, Volkswagen has managed to turn around their balance sheets in India. Within seven years of starting operations in India, Volkswagen has managed to become a profit making venture from a loss making one.

Volkswagen India net profits stood at INR 604 crores in 2015 fiscal. Though figures for fiscal ending 31st March 2016 are not revealed, experts reveal that net profit will remain in the INR 400-500 crore region.

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Despite major downsizing and cuts in shifts being undertaken across Volkswagen plants in Argentina, Russia, Mexico and Brazil, the company in India is not only working round the clock but is actively hiring workers while increased capacities are also on the cards.

Though India is a small part in Volkswagen global businesses, the company has extensive plans for India in the offing while understanding market strategies, cost structures and demands of buyers in the country. An exciting array of new products is being planned in compact SUVs and talks are already in final stages.

Polo and Ameo

Polo and Ameo

Speaking about launches in the recent weeks, Volkswagen India launched the Special Edition Polo and Vento along with new Ameo compact sedan. Based on Polo, Ameo is the most affordable VW car on offer today. It is priced between INR 5.14 lakh and INR 6.91 lakhs (ex-showroom).

Apart from catering to domestic demand, the company will also be concentrating on exports. One of the major reason in VW India registering profits is because of their exports.

VW Ameo – Photos


About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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