Volkswagen, the German automaker is planning to invest around Rs. 7,600 crores (1 billion euros) in India, so as to launch new models along with the further expansion of capacities in the country. The sales of the company have underperformed in recent times with its range of models in the country, which has forced the company to rework on its India plan for the coming years.
Volkswagen Group is most likely to spend the money to increase the capacity of its existing manufacturing hub at Chakan in Pune. Along with this, they are also planning to develop new products to add new vehicles to the company’s portfolio and build an engineering centre for their further development. Moreover, the company is considering to develop EVs for the Indian market very soon.
Currently, Volkswagen India sells Volkswagen Polo, Volkswagen Passat, Volkswagen Jetta, Volkswagen Polo GTi, Volkswagen Tiguan, etc. in the country. Since it is termed as a premium brand, Volkswagen all models are positioned above the popular brands like Maruti Suzuki and Hyundai Motors. Despite its presence in the country for more than a decade, it has managed to grab only 2 percent of the market share.
Volkswagen India is looking to implement new strategies for its growth in the country. Recently, it had also called-off a joint collaboration with Tata Motors even before its start. It has realised that India is an emerging market, where affordability of the vehicle is crucial for a good performance in terms of sales. Thereby, it is planning to bring in a new line-up of affordable products in the country. These products are to be based on MQB-AO platform and will be built domestically to keep the cost in check.
The Volkswagen Group is currently working on developing the existing platform before the new MQB-A0 based project goes fully down the line by 2022-23.