Auto India

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Europe’s largest car manufacturer, Volkswagen has sold approximately 10650 passenger cars in the 1st half of 2008 in India. And, they are expecting to close the year with the sale of 20K units.

This implies 69% growth in volume sales in India, which is a very important market for us. Our intent is to have at least a 10 per cent market share in the coming years.

- Mr. Jochem Heizmann (Member of the management board, VW) states.

The company has spent €580 million in the Indian market so far. This contains product-specific investments, besides a capex for a Chakan factory and a dealer network building.

VW has approximately 15 main dealers presently, and plans to grow the number more than 100 by the year 2010. Currently, VW is just catering to a domestic market, and has no plans for exports now.

The company plans to tackle increase in steel costs and other input prices with keen and flexible making strategies, besides ‘localizing content’ to an extent of almost 50% to start with.
The firm has confirmed plans to make a vendor park for their providers in the India at their 575–acre property at Chakan.

The company has 8-models in the India that includes the Jetta, Passat and Polo.

VW plans to launch 2-commercial vehicles, the light commercial vehicle and a 7-9 seater “business bus”, which is intended at corporate to ferry employees and remain them productive throughout the travel. The business bus will be equipped with TV, internet, telephone and fax facilities along with the others things.

The size of the global automobile industry is expected to increase from 70.6M by 2010. Of an incremental 8.4M sales units during the year 2007-10, the Asia-Pacific areas probably to contribute 6.2M units and Latin American area to contribute 0.8M units, according to the Emkay research analyst.

The Skoda Fabia and Polo models are expected to take volumes for the industry, while the UP models are expected to be competition to the low-price cars in Indian market, including Tata’s Nano.

We will not be able to fulfill our quality and safety demands if we go below a certain price. Quality is a given at Volkswagen. Hence, we are taking our time to ensure that it is adhered, too. We also believe that customers will look at the total cost of ownership when buying our cars. Our cars have low maintenance, good mileage and yet does not compromise on the driving experience. Besides, they have a very good resale value.

- Mr. Heizmann states.

India has a very skilled workforce that is what explains the appointment of K K Swamy as the CEO of Volkswagen India.

- He added.