The goal is to be the No. 1 automaker in the world by the year 2018. To achieve this goal, Indian automobile industry plays a key role. To conquer the world of objects on wheels, Volkswagen has to realign its focus on the Indian market. With only seven cars and one SUV on its shelf, the company has not gained much response in India. Though, its has been an acclaimed car-maker, a lot of pitfalls have made this German auto-major not a much sought brand in India. One among them is its customer service.
Volkswagen has a strong infrastructure when it comes to manufacturing facilities. It has also the best of technology. But somewhere it is failing to attract Indian customers and thus is constantly losing its market share. Perhaps, one of the reasons is its pricing strategy. The company should look at having a competitive pricing, especially when the Indian market is largely price driven. Volkswagen had launched its hatchback Up! quite a while back. However, due to the pricing issue, it has still not been launched in India.
Volkswagen had also unveiled the Taigun compact SUV in Brazil at the Sao Paulo Motor Show. Indian entry is indeed expected in the next couple of years. However, if the company does not focus on its pricing strategy, any new product it gets to India, might not become a hit. Currently, Volkswagen has plans of bringing its global brands to India. An increase in its product line could perhaps give the customers a bigger list to choose from. Also, plans are in place to restructure its services. This is the much needed change in the company as most of the customers in India switch their brand loyalty due to the absence of a better customer service.
Some understanding of the Indian market has led to Volkswagen to put on the thinking hat and understand what the customers expect. It is planning to refresh its high selling models, Polo and Vento to better suit the customer needs. The latest news which is in air is that Volkswagen is planning to launch a new low cost brand under its umbrella which would give competition to low cost brands like Datsun from Nissan and Dacia from Renault. This new brand would be in addition to the already existing 13 brands under the Volkswagen Group.
The German automaker is also planning to set up an engine manufacturing plant in India by 2015. To take the cost reduction advantage by localization and to tap the export potential, Volkswagen Group would invest $78 million in its Indian operations. Exports from India would begin from next year to countries like Taiwan and North Africa. Well, its a matter of another six years. Will the German giant attain its goal or will there be some other Hyundai car company ruling the automobile world?
Source – EconomicTimes
