The German car manufacturer Volkswagen has been in the Indian market for more than a decade but the company failed to make its place among the Indian customers. To make an impact in the fastest growing Indian market and customers, the company has decided to come up with affordable cars.
According to the reports, Volkswagen will set up a new manufacturing line at its Chakan plant in Pune. The company will also set up a new engineering centre to develop new cars for the Indian market. Indian markets and Indian customers are price sensitive. The most sold cars in India like Maruti Suzuki and Hyundai cars are affordable and deliver good mileage. Volkswagen cars are priced higher than Maruti Suzuki and Hyundai and the mileage is also less as compared to other options.
Volkswagen to develop affordable cars like Maruti and Hyundai
Now that Volkswagen understands the needs of Indian customers, it has decided to come up with affordable cars in the Indian markets. Earlier this year in August, the Volkswagen deal with Tata Motors to develop affordable cars was called off. The company develops premium cars under the Volkswagen and Skoda brands for the Indian markets but has not been able to capture a significant market share. The German car makers both brands were able to capture only 2 percent market share in India in the last 15 years.
Now the German Car maker company has decided to launch affordable cars like Maruti Suzuki and Hyundai in India. The new cars will be based on its MQB-Ao platform and will be made localised to keep the costs low. Manufacturing the cars at low costs will enable the company to keep the prices affordable for Indian customers. Volkswagen and Skoda will work together to develop new models of cars in India that will also be exported to foreign markets.
Volkswagen Cars to Rival Maruti Swift, Maruti Baleno, Swift Dzire and Hyundai i20
According to the reports, the company is planning to make a premium hatchback to compete with Maruti Suzuki Baleno and Hyundai Elite i20. Also, the German car maker will develop a mid-size sedan to compete with Swift Dzire and a compact SUV to take on the likes of Maruti Suzuki Brezza and Hyundai Creta. The company will finalize the development of new models in early 2018. As, now, considering the needs for Indian markets, Volkswagen has planned to change its product strategy, it is expected to increase its market share in India in the coming years.