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Volkswagen lowers market share target due to poor sales

Snapshot: Volkswagen Group has lowered market share projections from 20 per cent to 7-8 per cent by 2018.

German carmaker Volkswagen Group has reportedly, scaled down its India maker share target to 7-8 per cent by 2018 against the earlier projected 20 per cent, on account of poor sales and in the face of fierce competition from heavyweights such as Maruti Suzuki, Honda and Hyundai. 

Volkswagen Group leads five car brands in India, of which Volkswagen and Skoda form the mainline, while Audi, Porsche and Lamborghini occupy space in the luxury car segment. Out of the five brands, only Audi has been able to have a strong hold in its target segment. 

Skoda on the other hand, has completely withdrawn from the hatchback segment and is now working off models like the Rapid sedan. The Skoda Superb luxury sedan too, is facing a tough time with market sentiment shifting towards SUVs. Furthermore, bigger brands like BMW, Mercedes Benz and even Audi are now offering smaller vehicles that are priced closer to the Superb’s bracket. The soon-to-be-launched Audi A3 sedan could very well serve as death sentence to the Superb and consequently, the overall D-Segment. 

Commenting on the situation, Mahesh Kodumudi, president and managing director of Volkswagen India said, “It is a challenge and India is not an easy market. It is a struggle to find the right product and the right cost structures to make a deep cut” Kodumudi who is India in-charge of Volkswagen Group said that one of the option that the company is considering is to look at increasing localisation in India, so as to price their products on par with its rivals. 

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