Volkswagen eyes fast-track growth in emerging Indian market
21 August 2009
European auto major, Volkswagen, is gearing up to sell over 100,000 units in India by 2014 by which time the domestic car market is expected to growth to 2 million units.
The company hopes to power its sales through the hatchback and sedan models of its Polo and a strengthened dealership network. At the same time the company seeks to establish a robust company- facilitated finance arm to drive wholesale and retail sales.
According to Neeraj Garg, director at VW's passenger cars division, Polo would be the driving model for the company. VW's present operations in India are miniscule with its sedans like Jetta and Passat forming the mainstay. The company sold around 1500 units in 2008, a number which it hopes to double this year.
Garg said the company's volumes would come through the Polo which will be launched in 2010 in both hatchback and sedan versions. He added that the company would also bring in the super-luxury models like Phaeton and Beetle mini-car through imports, this year.
Volkwagen, which is Europe's biggest carmaker is investing Rs3,800 crore in India. It has set up a manufacturing facility in Chakan in Maharashtra to produce 1.1 lakh units of the Polo annually.
Garg, who was interacting with reporters on the sidelines of a company event said that the company would be launching the hatchback model of Polo some time during the first half of next year and bring the sedan model in the fall of 2010.