Team-BHP - View Single Post - VW Tiguan: Answer to India's need for a 15lac SUV?

DerAlte · 9th June 2007, 11:06

It is always a "which came first: chicken or egg?" dilemma for the auto manufacturers: Price versus numbers.

For smaller numbers, there is no point in creating the assembly line - so you have to import the vehicles as CBU. That's why all the sub-$20K cars land up costing more than 15L in India (CRV, Tucson, Endeavour, ...). Support service is not a problem since all of them have the infrastructure in place and it is only incremental training for the mechanics. Spares cost high - again direct imports >> inventory cost!

Now, if only there are numbers to justify gearing up the assembly line (even 1 would do). That won't happen, since a majority of the buyers prefer 7-seaters at least, and you can't do that in compact based on Golf.

GM tried the Subaru Forrester but failed, even though it was a real good SUV (OK, an X-over, but so is the Tiguan). Must see what VW does.

9th June 2007, 11:06	#7 (permalink)
DerAlte Team-BHP Support Join Date: Mar 2007 Location: Bangalore Posts: 1,795	It is always a "which came first: chicken or egg?" dilemma for the auto manufacturers: Price versus numbers. For smaller numbers, there is no point in creating the assembly line - so you have to import the vehicles as CBU. That's why all the sub-$20K cars land up costing more than 15L in India (CRV, Tucson, Endeavour, ...). Support service is not a problem since all of them have the infrastructure in place and it is only incremental training for the mechanics. Spares cost high - again direct imports >> inventory cost! Now, if only there are numbers to justify gearing up the assembly line (even 1 would do). That won't happen, since a majority of the buyers prefer 7-seaters at least, and you can't do that in compact based on Golf. GM tried the Subaru Forrester but failed, even though it was a real good SUV (OK, an X-over, but so is the Tiguan). Must see what VW does. __________________ Never believe it cannot be done - it's only that you haven't found out how!!!