Volkswagen India is working towards localising its operations. To launch Tiguan in April and Passat in July.
Now it’s been over a decade since Volkswagen entered the Indian market and since inception, Volkswagen has had one roller-coaster ride. The German carmaker, in spite of having varied cars in its portfolio did not go up to the mark it desired. Like they say it’s never too late, Volkswagen India has decided on localising its operation and bringing new feature rich products to India.
Volkswagen India started off initially with its, now and even then, bread and butter models, the Polo and Vento. Nor did the cars gain much popularity and acceptance, neither did they bring much revenue to Volkswagen. Some of the assumptions they took in the early days have not proved to be 100 percent right. The expectations were very high of market growth, but when that didn’t happen, the plans backfired.
Being the ‘world’s largest car manufacturer’ and ‘Europe’s biggest car manufacturer’, it wasn’t easy for Volkswagen to enter the Indian market and grab a significant share of the market. Where Volkswagen went wrong is probably with their less understanding of the Indian market. Every market has its own characteristics, and the Indian market is no different. When asked what the company has learnt from the experience till date, people at Volkswagen say, “Indian market prefers newness”.
The German car manufacturer has been here for over a decade and still has a lot to learn. Volkswagen is completely focused on localisation and is wanting to see itself as the most preferred affordable premium brand in India. Its recent launches, the Ameo, is an outcome of this learning, which comes with segment-first features like rain-sensing wipers, cruise control, etc.
To survive in a mass market like India and to be competitive, manufacturers have to resort to localisation. Volkswagen constantly is increasing the level of localised content in its product lines, and hence is also cutting down on its costs.
Volkswagen India Localisation
– Volkswagen intends to be the most preferred affordable premium car brand in India
– The carmaker has increased the levels of localisation in its operations
– Localisation will cut down the cost of components and the car as a whole
