Luxury takes on German muscle

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: Come December, Indians too will be bitten by the Beetle bug. But the original ‘people’s car’ from Germany won’t be so tagged in India. Nor would it come from Europe. Volkswagen would rather import the Beetle from Mexico—inviting 104% duties—and position it as a luxury brand.

“India’s market definition of people’s car is completely different from that of Germany. These two markets cannot be compared in terms of people’s aspirations and expectation,” says VG Ramakrishnan, senior director, automotive & transportation, South Asia-Middle East & North Africa, Frost & Sullivan.

In Europe and the US, small cars are usually the second car for families but in India, it is the primary car to be driven on all sorts of roads. Hence, it has to be built differently. For example, cars made in India may require a higher wheelbase with better ground clearance and bigger capacity inside.

Beetle will be positioned in a unique segment of its own in India, though with a price tag of Rs 16 lakh to Rs 22 lakh, it would compete for space with similarly priced brands like Toyota Camry, Nissan Teana, Honda CRV and Hyundai Tucson, among others. Volkswagen does believe people would buy Beetle for the brand and the uniqueness it stands for.

A quick history of the vehicles shows no other car exemplifies the growth of the automobile industry in the 1950s like the Beetle. It heralded the onset of a new era. Millions of people world over owed their mobility to the Beetle. It is no wonder that it became the first car in the world to sell over 20 million units. But in India, the Beetle would be courting the elite.

In terms of engine specification, Beetle is expected to come with 2.0 litre, 85 kW (115hp) petrol engine and 6-speed automatic gear box. Besides, the car boasts advanced safety features, ABS, exception comfort and advanced technologies.

December will also see the launch of a famous sport utility vehicle from the Volkswagen stable, Touareg, on the Indian roads. Starting with its introduction in 2003, Touareg quickly became an award-winning vehicle with nearly 300,000 sales worldwide in less than four years. Today, the Touareg has become one of the most successful luxury SUVs ever, winning awards and honours such as ‘4X4 of the Year’ and ‘Best SUV’, according to Volkswagen.