Volkswagen (VW) plans to invest Rs 7,900 crore (US$ 1.13 billion) despite the present slowdown in the Indian market. This will be companies second investment in the country focused on taking a market pie, which is considered as one of the bright spots in the global automotive world.
The company plans to launch SUVs, sedans, electric vehicles and mini cars in the next few years to succeed in India this time after many failed attempts. VW plans to beat the competition by becoming completely local, said, Mr Bernhard Maier, the global CEO of VW. Currently, Skoda is the leader in the segment.
Mr Maier added, “India is one of the most promising markets in the world, but it is also one of the most competitive. We want to be hyperlocal here this time and get the right products at the right prices to win our share here”. The company launched two new SUVs in India.
Skoda, which arrived in the country in 1999, has been the oldest company in the group, while, the parent company VW matrix arrived around 2010 with an investment of US$ 1 billion.
Although, the company achieved a low single-digit number against its 20 per cent target. The partnership along with other companies like first with Japan’s Suzuki (who owns Maruti) and then with the local player Tata Motors didn’t led to any positive result leading the company to go solo for its second start.
Mr Maier said the cars from the new platform will carry a high degree of location, approximately more than 90 per cent helping the company to remain competitive.
To take on the SUV segment, company plans to launch Taigun whereas on the other hand, Skoda’s car from the same platform presently offers the code name Vision IN. This will mark the company’s entry into the smaller-sized SUV segment, which has been one of the most popular categories in the market.
Though, the Indian market provides opportunities for global car manufacturers, policy certainty is required from the side of the government.
The company also plans to introduce electric cars in line with government policy. Though, Mr Maier added that first issue of charging infrastructure and buyer subsidies need to be addressed then the company will enter the market.
Source: IBEF
Image Courtesy: CEO Today
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