TN is most successful market for Volkswagen

Plans to introduce a new compact SUV model, change culture and lend regional flavour are part of the efforts to kick-start a new chapter for the company, that has found Tamil Nadu as its most successful market. It has recorded over

7 per cent growth in this region.

Steffen Knapp, Director, Volkswagen (VW) Passenger Cars, who has assumed charge recently, said his first visit in TN took him to Coimbatore, a market, that reflected the diversity and seemed a perfect fit for the brand in terms of value. The biggest dealer group is in the textile city, contributing to the state’s “successful and substantial sales” volume. In TN, VW has 11 touchpoints.

To show how important India as a market is to the company, VW is striving to make “premium” cars accessible to customers. That would entail developing a product in India, by Indians to be sold in the country, he said. 

The new sports utility vehicle, given the increasing preference over sedans due to higher ground clearance and space, is scheduled to be launched by 2020. Incidentally, compact SUVs have been growing at 32 to 35 per cent, he pointed out.

Noting that its 10-year journey (with a break) had established and built the brand, VW is ready to scale up its business. 

“By doing it the Indian way,” Knapp sought to explain as the first product under the new blueprint would be introduced in the market with indigenous content. A development centre in Chakan (Pune), where Indian engineers were working on local products, adding a new line to boost capacity by 20,000 cars so that it can produce 2 lakh units annually are part of the plans.

To take up its share from its current 1.3-1.4 per cent to 3 per cent by 2025 is the vision, Knapp said, seeking to allay the confusion around the role of Skoda, its sister company. Both the companies would ride on the MQB platform as far as development and production are concerned.

But, when it comes to marketing, “it is going to be individual driven… completely, separately working as directors” with clear and distinct strategies, he added.

VW found over 90 per cent of cars are sold to new customers and a majority of VW ‘Polo’ were first time buyers. Safety, as a feature, was driving lots of women buyers besides design and comfort.

Knapp said unlike North, which was novelty-driven with ‘shiny’ being the choice, the level of literacy and a conservative nature drew southern customers to rely on safety and functional features.