NEW DELHI: Volkswagen (VW) group is taking a second bet on India as it pumps in a fresh one billion Euro (Rs 7,900 crore) to take a pie of the market, which is seen as one of the bright spots in the global automotive world, despite the current slump.
VW will launch SUVs, sedans, electric vehicles and mini cars over the coming years to succeed in India this time after many unsuccessful attempts. Skoda has been mandated to lead the charge this time, and Bernhard Maier, the global CEO of the company who is also on the board of VW, said the company is “going fully local” to beat competition.
“India is one of the most promising markets in the world, but is also one of the most fiercely competitive. We want to be hyper local here this time around and get the right products at the right prices to earn our share here,” Maier — who was part of the release of two new India-bound SUVs by the group on Monday — told TOI.
While Skoda has been the oldest company from the group present in India (it came in 1999), the parent VW came around the year 2010 with an investment of $1 billion.
However, the going has not been easy for the company and against a target of 20% share by 2018, the VW group has only managed a low single-digit number. Moreover, the group’s efforts to cobble up partnerships for a smoother India sailing — first with Japan’s Suzuki (that owns Maruti) and then with local player Tata Motors — could never fructify, prompting it to go solo in the second start.
Maier said cars from the new platform will carry a very high degree of localisation — upwards of 90% and this should help the products stay competitive.
The SUV is called Taigun and when launched, this will take on models such as Hyundai’s Creta and Kia’s Seltos. On the other hand, Skoda’s car from the same platform currently carries the code name ‘Vision IN’ and this would mark the company’s entry into the smaller-sized SUV segment, which has been one of the hottest category in the market.
Maier said that while the Indian market provides opportunities to global carmakers, there is a need for the government to provide policy certainty. “We need policy predictability here.”
Asked whether the group has plans to bring in electrics here, he said they will certainly make an entry here in line with the policy of the government. However, he added that there is a need to sort out issues like provision of charging infrastructure and buyer subsidies. “We will be ready when you are.”
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