Volkswagen to introduce new strategy for Indian market

German automaker Volkswagen will introduce a new strategy for the Indian market after posting successive years of lower than expected annual sales.
A report from the ET quotes certain  unnamed sources within the company who say that this plan will involve the introduction of new models, better after sales support and incentives to dealers. The plan also involves cost reduction by further localisation of parts as well as streamlining the sales and marketing operations. It has already increased the number of cars being exported from India to better utilise its Chakan plant.
Perhaps one of  the biggest challenges that the company has to face and overcome is the perception that it is a high cost brand. The report says that at the heart of its strategy will be the plan to keep its dealers smiling.
This step is in the light of the fact that with volumes taking a beating over the last few years, many of their dealers have resorted to overcharging both on service and spares in a bid to be competitive or for that matter even stay afloat. It is believed that VW now offers 10 per cent to 12 per cent of a vehicles value as commission to the dealers as compared to the previous five to six per cent.
In terms of its product lineup, VW is expected to introduce the new Beetle, next generation Passat as well as the all the VW Tiguan which is expected to revive their SUV range in India. We also believe that they will bring the Taigun compact SUV and Golf hatchback as a part of their future lineup for India.

Source:ET