After tasting success with its compact car Polo in the country, Volkswagen is planning introduction of a smaller car than Polo for Indian consumers Riding high on success of its compact car Polo in India, Volkswagen (VW) is considering launching another compact car in India, which will be smaller car than Polo. As per company officials, the German auto major is working on it, but a final call in this regard is yet to be taken. It must be noted that earlier in March this year VW launched its compact car Polo in the country, which has received positive response from consumers, so much so that the company has been trying hard to ramp up its production to meet escalated demand.
Banking high on compact car segment
According to Jaspal Singh, head of sales, KSM Motors Pvt Limited, a Volkswagen dealer in Mumbai, “VW is banking on growth in the compact car segment in India, which is on full swing. The dynamics of the auto segment has undergone rapid transformation in the last 5 years; today’s consumers prefer small cars as compared sport utility vehicles (SUVs).” The small car segment accounts for nearly 75% of the car sales in the country.
.jpg) In this context, Vijay Ghadge, managing director of Vijay Engineering, a mid-sized manufacturer of auto ancillary units in Satara, Maharashtra, says, “VW’s move is in lines with other auto majors that are expanding their product profile to lure customers. At the same time it will further intensify competition in the small car segment.” Of late, several launches in the small car segment such as Ford Figo, Chevrolet Beat etc have further boosted sales of compact cars in the country.
Meanwhile, VW is also considering launching a new variant of Polo in India and aims to increase its local vendor base to nearly 80% in the next 2 yearsforprocuring auto components. The production of its new sedan Vento in the country will commence from July 2010.
Arup Choudhury |
