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: At a time when global automobile companies are facing existential crisis because of the downturn, Germany-based Volkswagen is coasting along well. In the first five months of this year, when sales of other companies went down by 20%, Volkswagen sold 1.57 million cars, equaling its performance in the corresponding period last year.

So, what is driving the automaker? The company attributes its success to the ‘sustained multi-brand strategy and ever broader model diversity’. In order words, it is the vast range of models, which has become the gamechanger for the company. Right from low-segment to super luxury cars, the Group has nine brands including Volkswagen, Audi, SEAT, Skoda, Scania, Bentley, Lamborghini, Bugatti and Volkswagen commercial vehicles. Each brand has its own character and operates as an independent entity in the market.

That is precisely the strategy being adopted even in India, and it’s paying rich dividends. In fact, Skoda India recorded sales of 16,188 units in 2008, which was a 28.5% more than 2007.

Company officials say the idea is to cover as many segments as possible and address all the needs of a customer, a strategy that has been followed for the last 15 years globally.

The strategy is complex because it contains different brands with different perceptions and images. In India, the company opened its counter in 2001 with the Skoda as a mid-segment brand with an assembly plant at Aurangabad. It was followed by the Octavia, Laura and Superb. It was then the turn of the Audi offering high-end luxury. Lamborghini and Bentley too have made their debut in India. And now the flagship Volkswagen brand is beginning to make a splash. The Volkswagen brand, which launched in India with the Jetta in 2008, is being expanded. It now has the high-end Phaeton, SUV Touareg, Passat and Fabia. Next in line are the Polo hatchback and the Polo sedan. The Group sees its presence in every segment as an advantage in the Indian market. For the customer, it is about having a choice across models, variants and price points. For the company it means if one segment is not going well, there are other segments that will move forward. This year Volkswagen will add 25 more outlets in India to take their number to 40.