The German car maker, Volkswagen groups are planning to increase their market share in India to 7 percent by 2018. This decision is a complementary move towards reaching the company’s global target of becoming the World’s No.1 car maker by 2018, as announced by its executive vice president last year.
According to Mr. Arvind Saxena, the Managing Director of Volkswagen India passenger cars, the current market share of the company in India is around 3 percent. The company has a target of achieving 6- 7 percent market share by 2018, which will be nearly doubling the current market share. The company is going to concentrate in all growing segments of the market, though the future plans or upcoming products were not revealed by its Managing Director.
He also said that there will not be any move to launch new cars in the Indian market this year. There will be only limited editions and new variants of the cars already in the market. This turns down the expectation about the launch of Volkswagen up!, a small car from Volkswagen, which was found being tested. The company feels that the market is in decline and there cannot be any possibility for launching new vehicles and the plans will only be to maintain last year’s market share this year.
Earlier, the Executive Vice president of the Volkswagen group said that the business case in India is not positive, though India is a possibility. The issues regarding VAT refund with Maharashtra government, where Volkswagen has its facilities in India, is said to be the reason for the company’s hesitation for new investments in India. The already announced Rs. 2000 crores investment for expansion process in India has also been put to hold regarding the same issue.