German auto major Volkswagen
is eyeing to more than double its market share in India to up to 7% by
2018, when it aims to become the largest car maker in the world.
“Our current market share in the Indian car market is
around 3%. The target is to achieve around 6-7% market share by 2018,”
Volkswagen India Passenger Cars managing director Arvind Saxena said.
Globally, the company has announced its ambition to
become the number one car maker by 2018. Without disclosing details, he
said the company will focus on all segments that are growing in the
Indian market to drive sales.
For the current year, Saxena said: “The market continues
to be down and we don’t expect any growth. We are looking to maintain
our market share of last year.” He declined to comment on whether the
company planned to enter the fast growing compact SUV segment and the
sub-4 metre sedan market in India.
For this year, Saxena said the company will introduce new
variants of existing models and limited editions to keep the sales
counter ticking.
According to Society of Indian Automobile Manufacturers
(SIAM) data, passenger car sales in India during 2012-13 stood at
18,95,471 units.
In November last year, Volkswagen Group Board Member and executive vice-president Ulrich Hackenberg
had said India would not be a priority market for introduction of new
models, such as small car Up! and major investments till 2015 as the
“business case is not positive”.
“India is a possiblility... We are looking at the
business case, which is not positive. In connection to the investment we
need to do, we are not in the situation to do that,” he had said. The
company, which was having VAT refund issues with the government of
Maharashtra where it has two manufacturing plants, is undecided on
setting up fresh facility required for new models like the Up!.
In January 2012, VW group had announced plans to invest
Rs2,000 crore for expanding operations in India, only to declare later
in May same year that it had been put on hold as the VAT refund issue
with Maharashtra government remained unresolved.
In the meantime, the group had last year announced
investment of €100 million (over Rs700 crore) in India over two years
for upgrading products and existing facilities. It has two manufacturing
facilities at Chakan and Aurangabad.
AMIT KUMAR SINGH
PGDM 2ND SEM
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