Volkswagen develops a two-level plan in India

CHENNAI: The Volkswagen Group - which includes brands like Volkswagen, Skoda Porsch e, Lamborghini & Audi - You are using a two-tier strategy to maximize the back-end synergy between your operations in India.

Within the group, individual brands are running their marketing & brand functions independently while sharing back-end support on group functions. That helps niche, small volume brands like Porsche or Lamborghini keep operational costs low, senior group officials said.

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Take Lamborghini India for example which sells cars priced upwards of Rs 2 crore. “We are part of the Volkswagen Group in India & we get a lot of support & synergies on a group level. Our sales, marketing & after-sales services are independent. But the management of the business, the back end side including HR support, logistics, finance & all is shared on a group level. This helps us leverage the strength of the group & optimize our business cost. We have common functions for more efficiency & then there are brand specific functions run independently,” said Sharad Agarwal , head, Lamborghini India. This synergy comes from a restructuring that the group announced just four months ago. Volkswagen had then announced that it was combining its factories, manpower & brands under a single umbrella in India.

This combining of all efforts works well Lamborghini . The company, said Agarwal, sold just 8,152 cars globally last year of which India contributed 52 cars, up from 45 in 2018. “Overall the super luxury car segment in India is still very niche. It was about 315 cars strong in 2018 & in 2019 it came down to 265 cars,” he said.