Volkswagen has never been a very popular car brand in India. It certainly has not been able to replicate in our markets, what it has achieved across the globe for over eight decades. There are multiple reasons why it finds itself in this situation in India. Major reasons being, cost of the products, cost of maintenance and lack of service network. Having said that, there is a sort of mini cult following of some of the products in India. Also, recently, it has improved its image and service network to boost sales. It is introducing new products in our market under its India 2.0 strategy.
VW has partnered with Skoda Auto in India to make use of all the resources of its daughter company in India. Under this initiative, both the companies will share the platforms to develop products specifically for our market. Along with that, Skoda and VW products will also have the same powertrains. We have already seen such type of badge engineering with Toyota and Maruti Suzuki products. Similarly, this tie-up seems to increase the accessibility and market presence of both VW and Skoda.
What do sales figures show?
The sales figures for the month of December 2020 show a year-on-year decline in sales of around 31%. VW sold 3,483 units in December 2019, but only 2,401 units in December 2020. This shows the general trend of VW in India. However, this could also be attributed to the pandemic and implementation of BS6 emission regulations. This situation is also true for all the other car makers. On the other hand, the month-on-month sales for VW have seen an increase of a massive 72%. Whereas VW sold 2,401 units in December 2020, it sold only 1,393 units in November 2020. This shows an upward recent trend for the company.
This is more in line with where the company is headed today. This surely is a step in the right direction. The cooperation between the two companies has yielded results and they are keen on capitalizing on this window of opportunity. Together, the strength of the Skoda Auto Volkswagen India Pvt Ltd will try to increase its footprint in India by utilizing each other’s strengths.
Volkswagen India- Future plans
VW has decided to go on a new product launching spree in 2021. It has announced the arrival of new models for its Indian lineup. The most prominent being VW Taigun, which will enter the mid-size SUV segment. This is an indication from VW to stand its ground in India and show everyone that VW is here for the long run. The mid-size SUV segment is one of the fastest-growing segments in our market and VW has decided to take on the likes of Hyundai Creta and Kia Seltos, which are the segment leaders. Apart from that, the all-new Vento will also be launched in 2021.
Also, the sales of all the products of VW has seen positive growth in December 2020, when compared with November 2020. Polo sold 1,805 units in December against 1,130 units in November. Following the same trend, Vento and Tiguan also saw an exponential growth trajectory. This recent trend along with new products will definitely diversify the product portfolio for VW in India. One can expect to see VW achieve new growth starting this year.