Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 11th March 2014, 12:54   #31
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

Before embarking on the launch of new products in 2016, the Volkswagen group realizes the need of strengthening good after sales service and low ownership costs are the two secret theat is the need of the hour to have success in the Indian car market.

Apart from addressing after sales service, Volkswagen and Skoda are embarking on a localization program that seeks to increase the local content on their best selling, mass market cars such as the Polo, Vento and Rapid from the existing 70 % to about 90 %.

The increase in localization will happen by means of engine and gearbox assembly, twi key components that are currently imported. Higher localization levels could see Volkswagen and Skoda managing to drop car prices by as much as 10-15 %. Also, long term ownership costs are likely to fall due to the higher amount of localization.

In a nutshell, both Volkswagen and Skoda seem to have gotten to a point where they’ve realized and ensuring the above are tied before brining in the NEW products in 2016.
volkman10 is offline   (1) Thanks Reply With Quote
Old 11th March 2014, 13:27   #32
BHPian
 
Join Date: Jan 2014
Location: New Delhi
Posts: 168
Thanked: 158 Times
Default Re: VW's budget brand for Emerging Markets

Quote:
Originally Posted by volkman10 View Post
Apart from addressing after sales service, Volkswagen and Skoda are embarking on a localization program that seeks to increase the local content on their best selling, mass market cars such as the Polo, Vento and Rapid from the existing 70 % to about 90 %.
This would give them a firmer footing in the Indian market; the current level of Honda City's localization is 92 per cent. So, if VW and Skoda can improve this parameter for Indian cars, they will do better.

Appointing service dealers across the country could help a lot of after sales support pain. Until such times that service is provided by the showrooms & there is no independent support mechanism in the form of service-only workshops, 'after sales' will always be an unknown commodity.
rdhawan15 is offline   (1) Thanks Reply With Quote
Old 11th March 2014, 14:00   #33
Senior - BHPian
 
dark.knight's Avatar
 
Join Date: Apr 2013
Location: India
Posts: 1,115
Thanked: 2,963 Times
Default Re: VW's budget brand for Emerging Markets

VW won't have to think too much. Their acquisition of Spanish brand Seat and its subsequent positioning as 3rd in line after VW & Skoda within their group makes me feel quite sure that if they do, they'd apply the same to Indian market too. While Seat was only a Spanish player VW after the purchase resorted to their usual tricks of platform sharing as follows - Ibiza = Polo, Toledo = Rapid, Leon = Golf, Mii = Up, only difference being restyled sheet metal.

I really think this will be a blooper if it happens, sure most consumers will welcome a new style and new badging but underneath all Vw's are the same and that initial curiosity will only last so long. Its far better to localise parts to 95%, stick with the same 2 brands and make them a little less exhorbitant followed up with good service sans the snob attitude.
dark.knight is offline   (2) Thanks Reply With Quote
Old 20th March 2014, 12:58   #34
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

VW could abandon the the budget brand concept for specific regions and would rather concentrate on a Global product strategy.

Would look forward to getting our quality perfect, improving our productivity, increasing our scope, the width and depth of localisation.

For India it would mean the following,
1. VW looking at the volume segment - sub 4 m segment, small cars called the A007 segment (smaller than Polo), MPV segment, SUV segment

2. Possible future cars in the B8 platfrom (Passat), Tiguan and Touareg as CBU's

3. Golf ruled out for India due to pricing ( Jetta territory)

4. To bring cars that are built on the MQB platform as quickly as possible to India

5. Next Gen Passat, Jetta and Polo built in the MQB platform is being aggresively looked into for India since Brazil, China are migrating to the new platform, and it becomes costly to maintain a standalone platform.
Skoda's Octavia is too is built on the same plaform and can use the same facility and is only a matter of one time investment.

Cheers!

Last edited by volkman10 : 20th March 2014 at 12:59.
volkman10 is offline   (2) Thanks Reply With Quote
Old 20th March 2014, 13:25   #35
Team-BHP Support
 
noopster's Avatar
 
Join Date: Feb 2010
Location: Pune
Posts: 8,665
Thanked: 9,197 Times
Default Re: VW's budget brand for Emerging Markets

Quote:
Originally Posted by volkman10 View Post
VW could abandon the the budget brand concept for specific regions and would rather concentrate on a Global product strategy.
Could you please mention the source of your information? Your post has some specifics that seem to have come from a company insider or press release.

The only thing I could find through a cursory Google News search was this

Quote:
Volkswagen's chief of research and development, Dr Heinz-Jakob Neusser, has confirmed that the VW Group is still working on the launch of a budget brand to rival Dacia – but admitted it is yet to find a solution that will allow it to prepare for launch.
The mooted Volkswagen Group budget brand had previously been reported to have hit repeated problems as a result of the company’s own internal standards for manufacturing.
noopster is offline   (1) Thanks Reply With Quote
Old 20th March 2014, 13:34   #36
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

Quote:
Originally Posted by noopster View Post
Could you please mention the source of your information?
Here is detailed information on the subject.

http://overdrive.in/news/interview-m...-future-plans/
volkman10 is offline   (2) Thanks Reply With Quote
Old 20th March 2014, 14:05   #37
BANNED
 
Join Date: Jan 2014
Location: Info withheld
Posts: 127
Thanked: 336 Times
Default Re: VW's budget brand for Emerging Markets

Quote:
Originally Posted by volkman10 View Post
[*]A 6.5 lakh rupees wagon based on the sedan

I've waited so long for this moment. They sure have a winner on their hands, it it handles well. Not to mention the monopoly in that segment.
HyperRetard is offline   (2) Thanks Reply With Quote
Old 21st March 2014, 07:47   #38
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

A new twist to the budget brand that VW has been looking at. A 13th brand could emerge within the group.
VW's senior executives will approve the car in the next few weeks and the supervisory board is expected to sign off on the project by the summer.

The budget make would be the group’s 13th brand and would likely include a small family of models with an annual sales target of about 500,000 units.
It is expected that the first model from the new brand would make its debut by late 2016 or early 2017, and should cost no more than €7500

The brand to be launched in China and If successful in China, it is believed that VW will turn its attention to other emerging markets where it is yet to gain a significant presence, notably in India and some south-east Asian countries. VW lacks a strong presence in markets such as India and southeast Asia which are dominated by no-frills models, and without a successful budget car and analysts have questioned whether the group will be able to meet its goal of becoming the world's biggest carmaker by 2018.

Quote:
Volkswagen also could look to launch the brand in other emerging markets such as Africa, Eastern Europe and Latin America
Quote:
Volkswagen Group chief executive Martin Winterkorn is keen to test the brand in China first, with it likely to be built at one of VW’s joint-venture production facilities shared with Chinese manufacturers SAIC and FAW.
Quote:
Dr Winterkorn is said to have ruled out using existing cut-price Volkswagen brands such a Skoda and Seat in favour of establishing an entirely new brand.

http://www.goauto.com.au/mellor/mell...257CA200098C54

Last edited by volkman10 : 21st March 2014 at 08:12.
volkman10 is offline   (1) Thanks Reply With Quote
Old 23rd March 2014, 23:52   #39
BHPian
 
Join Date: Nov 2012
Location: Hyderabad
Posts: 390
Thanked: 346 Times
Default Re: VW's budget brand for Emerging Markets

If VW thinks a high price is the only thing holding back sales for them, well, I think their feedback mechanisms are not giving them an honest feedback. Well its their money, and if they think pouring a few billions on a budget brand with low costs and lousy specs is the answer, all power to them.

We'll wait and watch. But I know, I will not buy VW Budget for the same reason that I did not buy the GT TSI, or the Jetta.

Hope springs eternal .....
Contrapunto is offline   (1) Thanks Reply With Quote
Old 24th April 2014, 19:45   #40
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

VW has agreed budget car concept, design.

Quote:
Volkswagen (VOWG_p.DE) has agreed the basic concept and design of a budget car for emerging markets.
Europe's largest carmaker has been trying for more than a year to hit internal cost goals for the model, which would likely sell for between 6,000 euros ($8,300) and 8,000 euros and be built in China, the biggest market for low-cost cars.

The concept and design are now in place,and will produce all components in China.

VW lacks a strong presence in markets such as India and southeast Asia which are dominated by no-frills models, and without a successful budget car, analysts have questioned whether the group will be able to meet its goal of becoming the world's biggest carmaker by 2018.

http://in.reuters.com/article/2014/0...0D600N20140420
volkman10 is offline   (1) Thanks Reply With Quote
Old 16th May 2014, 13:18   #41
Distinguished - BHPian
 
RavenAvi's Avatar
 
Join Date: Jun 2011
Location: Flying Around
Posts: 5,373
Thanked: 28,321 Times
Default Re: VW's budget brand for Emerging Markets

Volkswagen has finalised to roll out it's budget-brand cars in China from 2017 onwards.

In all probability, these cars will be manufactured by one of VW's Chinese partners, either SAIC or FAW, and might be based on the Santana's platform.


VW's budget brand for Emerging Markets-vwsantana.jpg


Quote:
German automaker Volkswagen plans to roll out low-price models in China in 2017, targeting first-time car buyers.

The plan was revealed at the company's shareholder meeting on Tuesday. CEO Martin Winterkorn said it will likely start production in 2017. Though he did not touch on specifics, such as pricing, he hinted a final decision will be soon made.

Low-price models will target consumers who have never owned a vehicle. VW is expected to keep the price under 7,000 euros ($9,643) and to use a different brand name.

SOURCE - http://asia.nikkei.com/Business/Comp...-China-in-2017

(image courtesy IAB)
RavenAvi is offline   (1) Thanks Reply With Quote
Old 4th December 2014, 19:19   #42
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

VW spells out its design for China - India production of the emerging market brand not ruled out.
Name or Brand not yet out, but will in 2017.

At the start of 2017 is initially a four-door sedan and give a five-door hatchback. The end of 2018 or early 2019 followed by a largely identical design crossover in the SUV look - but without SUV ambitions; a four-wheel drive is not provided.

Reuse of Technology:The technology of the new VW, which may be none, derived mainly from the lower drawers of the parts shelf.To start only a 1.4-liter gasoline engine will be offered with 105 hp - without expensive parts such as turbo or direct injection. Fuel efficient - at the traffic lights, the engine should stop.
Safety not compromised -Airbags, ABS, air conditioning , power steering and central locking are standard equipment. Windows, ESP and a modern infotainment there should be as options.

Name:  ZeichnungenzumBudgetCar560x3727d9a15e49ba2f1d5.jpg
Views: 445
Size:  32.2 KB
Name:  ZeichnungenzumBudgetCar320x2275cf893661d13160f 1.jpg
Views: 491
Size:  17.6 KB


Quote:
VW has reportedly required to produce the super low-cost Mobile in China and sell only in China. An export is excluded - but not a second production rail in a growth market like India.
http://www.autobild.de/artikel/vw-fu...o-5467110.html

Last edited by volkman10 : 4th December 2014 at 19:25.
volkman10 is offline   Reply With Quote
Old 13th March 2015, 08:03   #43
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

Volkswagen's Group continues to work on a new Budget Brand - an update will be given in the foreseeable future.

According to the rumors, the plan contains three models: a compact sedan and an estate model, followed by a MPV. The new brand will be launched under a new badge and will be aimed at emerging markets first.

Quote:
The Group has faced delays on the project as its engineers struggled to find ways in reducing the cost and maintain a sufficient profit margin at the same time.
The first model of this new brand is set to cost between 6.000 and 7.000 euros (about $6,500 to $7,600) according to the first release back in 2012. The new car will be manufactured in China and the basic concept and design have been finalized.
http://www.carscoops.com/2015/03/vol...ill-under.html
volkman10 is offline   Reply With Quote
Old 13th March 2015, 09:20   #44
BANNED
 
Join Date: Jun 2009
Location: Swindon, UK
Posts: 696
Thanked: 84 Times
Default Re: VW's budget brand for Emerging Markets

Quote:
Originally Posted by vasanthn21 View Post
On the flip side, India should not becoming the dumping ground for all older-design cars!
And who is to blame for this?
When we were given Radial Tyres, people said they are not for Indian conditions.
ABS is not required for city driving.
Airbags are not necessary.
Getting 1 Kmpl extra is more important than having a more crashworthy body.
Live To Jive is offline   Reply With Quote
Old 3rd April 2015, 10:57   #45
Distinguished - BHPian
 
volkman10's Avatar
 
Join Date: Dec 2010
Location: --
Posts: 10,062
Thanked: 15,601 Times
Default Re: VW's budget brand for Emerging Markets

VW could abort the budget brand project - To go premium outside China markets , for China only, a saloon and SUV design is underway.

Quote:
Quote:
There are no more details because the engineering work is still under way, but if the project makes production the cars will only be sold in China. Previous work at VW on a budget car for China seems to have been put on ice. Said to be a contentious issue inside the company, the ealier budget project initially failed to meet rigorous cost targets
Outside of the Chinese market, VW will not be competing on price, because the brand is centered on being the premium choice among mass-car makers.
http://www.autocar.co.uk/car-news/mo...chinese-market
volkman10 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
General Motors developing new platform for emerging markets Aditya The International Automotive Scene 15 7th December 2014 20:36
Peugeot rolls out 301 (and new nomenclature) for emerging markets. India too? Eminenttismo The International Automotive Scene 39 14th February 2013 16:57
Nissan to build cars Under Datsun Brand for India & other markets in 2014 arvindmanju The Indian Car Scene 11 21st March 2012 14:43
Volkswagen plans budget UP! car in emerging markets RemingtonSteele The Indian Car Scene 0 23rd June 2011 11:02
Toyota to produce low cost vehicles for emerging markets bigman The International Automotive Scene 0 3rd April 2006 00:04


All times are GMT +5.5. The time now is 09:04.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks