As the brand director of India operations, what exactly are you doing to enhance the perception of VW in India?
Perception comes from firstly product portfolio, secondly dealer network, thirdly communication and positioning in the market, and fourth and most important is the customer experience. We have totally revamped our product portfolio and brought in the latest platforms and products. This has given us a huge leverage in the market in terms of customer perception. We also decided to revamp our total communication process – whether it was communication to the customer, to our dealer network. We changed everything – how our staff dress at dealerships, how do they talk to customers, everything was refreshed, relooked at and designed to give a better look and feel. We also decided to become more digital in keeping with the times. Part of this was to launch our ‘Sarvottam 2.0’ initiative, which had more than 40 digital initiatives like car price configurator, online booking, online booking for services, service cost calculator etc. so that the customer felt that everything was transparent. Further, the feedback we got was that our services were very expensive, so we introduced something called the ‘Forever Care’ package that had 4 years of warranty, 4 years of roadside assistance, and 3 free services. We also reduced our parts prices significantly and launched products like service value packs, extended warranties, all of which offer 20-25% savings to our customers. All these combined together change the perception and this is what the customer needs to experience – this is how we will ensure that 2022 will be off to a flying start when customers experience this proof of change.
What are the significant milestones achieved since you have taken over?
See it’s a beginning, it’s a journey. Whatever plans we have made, we have fulfilled so far. But it is a dynamic timeline you see. Every time you achieve one milestone, you are already gearing up to fulfil another, and the journey goes on. Customers’ expectations keep changing, the environment keeps changing, technology is constantly developing, so you always must be on the money and make sure that change is happening.
What is now the perception of VW service in India?
I think there is a big change definitely. One, we have started tracking social media trends so that has been a positive step over the last one year. We also do internal surveys about customers’ perception over costs, service, etc. that has seen a very positive movement. If I was to take this on a scale of 5, two years back we were around 4 and now we have moved to 4.5 and this is substantial. Also important is consistency – you may not get the same level of service across all our points in India, but today I am happy to report that it is 4.4/5 if not more in over 90% of our networks.
At a time when there is an acute chip shortage in the world, what are you doing to keep the perception of VW high in India?
You know that in India at least buying a new car is a celebration – maybe you got married, have just had a child, got a work promotion, could be any event and that is when you want a new car to celebrate. Financial planning is also very crucial, and most people gear up to this special day, so it can be quite disappointing when your choice of vehicle is not available, and you must wait indefinitely.
What is your perception on the role of electric mobility in India?
In the last one year, there has been a huge momentum – but if you talk facts, let’s face the reality at this moment. Right now, electric mobility is less than 0.5% of the market. In our company, we are following a top-down strategy with Audi and Porsche already having launched their electric cars. This is an important step for the group – we are testing the waters right now to get a greater learning for when things take-off. Although the market is low now, the good news is that it is doubling every year. By 2026, we foresee that 5-8% of the market could be electric cars and this would be the critical mass where we could try to bring in an electric car for the mass market. That is where we see the opportunity to happen in the second part of this decade and that is a point of contemplation for us here.
Where do you see VW positioning itself in the Indian market 10 years from now?
My 2030 vision: headlines in the newspapers saying Volkswagen electrifies India. I mentioned that we are looking at a 5-8% market share in 2026 for electric vehicles but by 2030 it should be 20-25%. Frankly, we would like to be a large part of it. By then Europe would also be looking at 70% of new car sales to be electric. I personally do see VW India playing a large role in electric mobility in India with the kind of expertise we have.
This interview was conducted by Ranojoy Mukerji, a contributing author for Express Drives
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.
