Volkswagen India is aiming to double its market share in India to 3% over its current market share of around 1.2% in the next three to four years.
In order to realise this target, the German car maker expanded its presence in Gujarat by opening six new touchpoints in Ahmedabad, Vadodara, Gandhinagar, Anand, Bharuch and Bardoli. With these six units, Volkswagen now, has a strong network of 15 sales and 8 service touch points across the state.
Ashish Gupta, brand director, Volkswagen Passenger Cars India, said, “Gujarat has always been a vital market for Volkswagen India. Around 10-11% of our total sales in India comes from Gujarat only. We hope that this expanded presence in the state will help us touch 12-14% of our overall sales from the state of Gujarat. Currently we are selling 400 to 450 cars a month in the state and I think that there is a potential for 600-650 cars per month”
He added, “The primary focus of Volkswagen India is the premium segment of the market. We are not thinking about going into the lower price segment because the Indian car market, in itself, is moving towards the premium segment. Indian consumers are becoming more value conscious. This can be explained by the fact that, in 2018, only 18% cars of the total car sales were above Rs 10 lakh, but in 2023, this number has already reached to 45%.”
“Build quality, safety and fun to drive are the three main focuses for Volkswagen. Taigun and Virtus have secured prestigious 5-star ratings regarding safety, for adults and kids both, from the global NCAP. This is the highest rating for any car in India”, added Gupta
Talking about the sedan and SUV segments of the auto market, he said, “The sedan market may not be as significant as SUVs but it is still relevant. It may never go out of fashion and we want to attack that. Volkswagen’s Vertus has been able to capture 20% of the sedan segment within the last one year.”
Commenting on the introduction of electric vehicles in India, Gupta commented, “We will soon launch EVs in India. Currently, EVs capture less than 0.5% of the Indian auto market. According to reports, it will touch 5% by 2026 and may reach 20% by 2030. The inflection point in the market share for EV is expected to be around 2025-26. Around this time the auto market will witness a mass electrification of vehicles and we are planning to encash that opportunity.”
It should be noted that Volkswagen invested Rs 8000 crore in India between 2018 – 2021 and the products that were launched after this investment are known as India 2.0. The chief strategy of the German car maker company is to become a premium accessible brand. With this aim Volkswagen India is expanding its presence to new emerging markets like tier-2 cities. In 2021 there were 100 touch points for the consumers. Now this number has reached 180 and it will be taken to 190 by the end of this year.