Volkswagen will invest Rs 8,000 crore in the second bet in India
NEW DELHI: Volkswagen (VW) is making a second bet for India, as it pumps a new billion trillion (Rs 7,900 million rupees) to take a market pie, which is seen as one of the bright spots in the global automotive world, despite of current depression
VW will launch SUVs, sedans, electric vehicles and mini cars in the next few years to succeed in India this time after many failed attempts. Skoda was mandated to lead the position this time and, the global CEO of who is also on the board of VW, said the company is becoming completely local to beat the competition.
“India is one of the most promising markets in the world, but it is also one of the most competitive. We want to be hyperlocal here this time and get the right products at the right prices to win our share here, ”he told TOI Maier, who was part of the launch of two new SUVs to India on Monday.
While Skoda has been the oldest company in the group present in India (arrived in 1999), the VW matrix arrived around 2010 with an investment of $ 1 billion.
However, the march has not been easy for the company and, against a goal of 20% participation for 2018, the VW group has only achieved a low single-digit number. In addition, the group's efforts to forge partnerships for a more fluid navigation through India, first with Japan's Suzuki (who owns Maruti) and then with the local player Tata Motors - He could never bear fruit, which led him to go alone in the second start.
Maier said the cars of the new platform will carry a high degree of location, more than 90% and this should help the products remain competitive.
The SUV is called Taigun and when it is launched, it will take models like Hyundai Crete and Selia de Kia. On the other hand, the Skoda car of the same platform currently bears the code name Vision IN and this would mark the company's entry into the smaller SUV segment, which has been one of the most popular categories in the market.
Maier said that while the Indian market provides opportunities for global car manufacturers, the government needs to provide political security. We need political predictability here.
When asked if the group has plans to bring electricity here, he said they will certainly make an entry here in line with government policy. However, he added that it is necessary to solve problems such as the provision of cargo infrastructure and subsidies to buyers. We will be ready when you are.