Volkswagen, the German carmaker, has shifted its focus in India towards premium products in line with its global strategy, as per a senior company official. The company has moved from a price bracket of Rs 6.5 lakh to Rs 7 lakh to an average price band of Rs 16 lakh, offering feature-loaded products to cater to evolving customer demands. The trend in the Indian auto industry is towards higher-priced cars, with around 40% of cars sold in 2022 being priced above Rs 10 lakh, up from 18% in 2018, according to data from the Society of Indian Automobile Manufacturers (SIAM). Volkswagen Passenger Cars India Brand Director Ashish Gupta stated that there is “no compromise” on features or safety, with customers unwilling to compromise.
Gupta stated that Volkswagen has moved up the “premiumisation stage” and will not revert to the sub-four-meter Polo segment. Instead, the company has raised its price points and its brand positioning. Globally, the brand’s sweet spot is the top of the volume segments, and VW has endeavored to move towards that position in India over the last three years. In 2022, Volkswagen sold over 42,000 cars in India, with approximately 4,000 being Polos and Ventos, resulting in an average price point of around Rs 14 lakh to Rs 14.5 lakh. The company’s transformation in India is in line with its global strategy.
According to SIAM data, domestic passenger wholesales in India rose to 10.1 lakh units in January-March 2023 from 9.20 lakh units in the same period the previous year. As a result, Volkswagen has changed its strategy to meet evolving customer demands, focusing on premium products to cater to the trend towards higher-priced cars in the Indian market. With no compromise on features and safety, customers expect high-quality products, and Volkswagen aims to meet those demands with its premium offerings. By shifting towards premium products, the company hopes to maintain its position as a top-volume brand globally, while also succeeding in the Indian market.
