Is the Volkswagen Ameo eating into the Polo pie?

The monthly sales of the Volkswagen Polo have been varying over the past year especially in the wake of new competition in terms of the Maruti Baleno. The sales seemed to have picked up momentum in May and June with 2480 units and 2977 units respectively. In July though, the sales have tanked to 1,047 units while the newly launched compact sedan, the Ameo has registered 2200 units in its first month of sales. With a striking similarity in the numbers, the question that comes up first is whether the Ameo is cannibalising the Polo's sales or not.

Putting things into perspective, the Ameo is priced aggressively as compared to the Polo. While the entry-level petrol Ameo is cheaper than the Polo, the Comfortline variants are similarly priced and the Ameo Highline is actually a tad more expensive as compared to the Polo. With such close pricing, the value for money perception by the car buyer will be instrumental in making the final buying decision.

In India, a sedan is always considered premium over a hatchback and it stays consistent even if it is a sub-four metre compact sedan. The Ameo also gets driver armrest, rear AC vents and reverse parking sensors with camera over the Polo, depending upon the variant you opt for. For the same size of four metres, the Ameo offers more boot space as compared to the Polo. So, at the current pricing, the Ameo turns out to be more bang for the buck than the Polo.

Volkswagen says that the Ameo is on the top of their priority list in terms of sales. With the limiting constraints of logistics, the company is focussing on getting more Ameo cars on the road. At the dealerships as well, the Ameo is being pushed more as compared to the Polo which may have resulted in the decline in sales of the hatchback. There is a word amongst the dealers that a price hike is imminent on the Ameo and now is the best time to buy the compact sedan.

It has been about a month that the Ameo is on sale and the diesel variants are expected to be launched soon. While from the face of it, it seems that the Ameo is biting into the Polo pie, it would be too early to comment. We will be tracking the progress of both the cars minutely over the next couple of months. Stay tuned.