[niteshbids]

Originally Posted by volkman10

Volkswagen group undergoes major leadership and restructuring changes.

Changes will likely trickle into India operations- Volkswagen will be a more 'PREMIUM' brand, hence the move to make Skoda lead the India product development and execution plans, as a volume segment player!

It seems that AutoExpress has got the details slightly wrong. Quite a few other websites that I read have the following to say

The new structure will include three brand groups: volume products, premium and super premium. The company makes mass-market cars under the Volkswagen, SEAT and Skoda brands, luxury cars under the Audi nameplate and very high-priced vehicles under the Lamborghini and Bentley brands.

Its statement said the truck and bus division, the fourth business group, would be made ready for capital markets, a step that could include selling shares in the division. The company did not detail the fifth and sixth business divisions ahead of a news conference scheduled for 10:30 a.m. (0930 GMT) Friday.

It makes a lot more sense to me as the VW brand is quite obviously a mass market volume brand and is not in the same league as the Audi, BMW or MERC.

Source

[Thad E Ginathom]

Originally Posted by niteshbids

It makes a lot more sense to me as the VW brand is quite obviously a mass market volume brand and is not in the same league as the Audi, BMW or MERC.

Upper mass-market brand!

What strikes me, though, is that one does not change position in the market with announcements: it will take years of adjustments to range and pricing.

Also, for a long time, in much of the world, VW has been competing with its lesser-image sibling Skoda, and Skoda has done very well in that competition. Is VW now intending that the same sort of relationship should exist between VW and Audi? Perhaps VW should drop VW from its range!

[volkman10]

Originally Posted by niteshbids

It seems that AutoExpress has got the details slightly wrong.

Yes You are right, but in India we will see how Skoda leads the group in the coming days.

[volkman10]

VW shows its EU/China and US plans for 2018. Derivative of T Cross is expected in India ( 2021?)

[volkman10]

The indecisive VAG group is revisiting India plans.

VW Group will decide India 'game plan' soon

Volkswagen Group’s Skoda division has not ruled out a partnership with Tata Motors in India to produce budget cars, just months after calling off a planned tie-up with the Indian company.

Link

[MaserQ]

Originally Posted by volkman10

The indecisive VAG group is revisiting India plans.

VAG has begun to give the impression that apart from giving Skoda (and its infamous dealers) the lead role in India for mass market products, it has nothing much else to offer the Indian market.. for now and in the medium-term future.

When the time for an upgrade comes, a lot of VW owners will look at the company product portfolio, shake their heads and move on to other brands. VW have a long, uphill climb to win back those lost customers, if and when they decide to get serious in India.

As a VW owner, I would upgrade within the badge without a second thought, but for the lack of products in certain segments and their dilly dallying stance on their future product strategy for India.

[volkman10]

First in 7 years, Volkswagen India output set to fall as exports weaken

Tough times ahead for VW India.

As expected when the markets have moved to the GEN Next vehicles with production done locally, VW India will find under utilization ( capacity) in its plants as exports will dwindle.

Volkswagen India (manufacturing arm) registered a net profit of Rs 12.5 crore, down 88% compared with Rs 107.6 crore profit after tax it registered in FY16.

The company has already adjusted its production as per the demand, and has had 15 no-production days — 8 planned, 7 unplanned, since the beginning of the year.

What Next for the VAG group in India to stay afloat till 2021?


Source:

[Thad E Ginathom]

Originally Posted by volkman10

Tough times ahead for VW India. ... ... ... What Next for the VAG group in India to stay afloat till 2021?

But... But...

Not so long since the Polo was the sudden darling hatchback of India. Is it possible that it was even a factor in much reducing the once-strong anti-hatchback bias here?

As a man with a close eye on these things, are you really saying that this may all be heading down the drain?

[volkman10]

Originally Posted by Thad E Ginathom

But... But...

Not so long since the Polo was the sudden darling hatchback of India. --

----with a close eye on these things, are you really saying that this may all be heading down the drain?

With cars like Vento's contributing to more than 10 fold in exports when compared to the domestic volumes it is hard for sustaining with low production capacity utilization due to its volume drop.

Polo's are averaging at ~ 1.5k/month with Ameo too in a similar figure in monthly sales.

VW will try to sustain in the next couple of years by launching the Ameo TSI/ cosmetic face-lifts in Polo's/Vento's or even probably trying out the new engines in the face lift versions ( as seen in the 1.0l MPI engine)

Unlike GM, for sure they will not exit this market and will come back with the slew of CUV's ( from VW + Skoda), hatchback and sedan's ( premium segment)

The above are just some thoughts with the FINAL decision on India investment plans by SKODA to be announced soon ( May/June?) pending final nod by the Volkswagen board.

[dark.knight]

Originally Posted by Thad E Ginathom

BNot so long since the Polo was the sudden darling hatchback of India. Is it possible that it was even a factor in much reducing the once-strong anti-hatchback bias here?

Just my opinion, but its formed with interactions with other car buyers, general purchase preferences and trends.. VW did not plan their India market all that well, either that or they never had 'top 3 in sales' in mind before starting. Their initial products could best be described as bare-minimum features and engine power at a higher than segment-average price. For example, to best elucidate what I mean, I'll compare what Skoda did with their first hatchback the Fabia and VW with Polo :

- Gen 1 Fabia : Sunroof, front-center arm rest, parking sensors, Bolero music system etc.. absolutely ahead of its time though it costed a bomb but well worth the price. It was the quintessential family hatchback of that age and it had lots of headroom and rear seat-space as it was a tall car.

- Gen 1 Polo : This came much after the Fabia, was priced above it and yet had none of the features as above, seating space was/is scarce and the entry of Polo meant that all the good features of Fabia had to be cut down as well and Fabia became a poorer cousin of the Polo. What didn't help its cause were the 1.2 petrol and diesel 3 cylinder engines as well.

By the time the 1.6 engines, the TSi and the 1.5 engines came into the market, it was too late as several other hatchbacks came in and built a reputation for practicality, space and reliability. VW today offers good value for money for the segment-leading features, engine spec and overall brand recognition.. but its been about 10 years since a platform change/new generation has been introduced and not many markets will prefer that.. the new Polo is wider, longer and more modern but we wont get it for another 2-3 years I guess.

Polo has its good share of fans, but I sure wouldn't call it a family hatchback. Its a great cruiser for 2 people and its a perfect little car for those occasional back-seat jaunts.. the TSi 1.2 is perhaps the best motor in India yet the car itself loses because of its lack of practicality and space.. it sits way too low and has barely enough legroom.

VW entered India hoping to ride on their international appeal and failed miserably.. they even watered down Skoda with their class-leading features and made them into another ordinary company in an attempt to re-align their positioning and that made things all the worse.

Its time to consider India as a modern market and release all the latest models here at the same time as the international ones.. the new gen Polo and Virtus will revive sales when they arrive, until then VW will have respectable sales of the TSi, TDi and their facelifted/improved versions but they will remain on par or slightly lower than average numbers due to the incredibly competitive market where more is offered in terms of legroom, reliability and practicality.

[volkman10]

The confused VAG plans for India - Now VW looks a big cars for India - S/CUV's and Sedans!

Hatchbacks( Polo's and Fabia's) will be de-prioritized, final decision should be taken by the middle of this year.

Amongst the scenarios explored by the carmaker, a proposal of two cars each for both Skoda (SK 216 — SUV, SK 271— sedan) and Volkswagen (VW 216 — SUV, VW 271— sedan) seems to be a primary choice, with focus on compact SUV and sedan while the hatchbacks will have no role, at least in the next five years

No-brainer to decode it- S/CUV's will be Skoda's Vision X and VW's T Cross and the Sedans are likely the Virtus from VW and next gen Rapid from Skoda

The first car from this project is likely to hit the market by FY21




Link

[volkman10]

One thing for sure - VW India going forward is a brand for face-lifts and special editions.

NOW a package of special editions in Polo , Vento and Ameo - 'Sport' edition.

All three cars will get visual updates as a part of the Sport package. Visual updates on all three cars include a black gloss roof wrap, a carbon fiber wrap for the wing mirrors, a sporty tail spoiler and side decals

[volkman10]

The VAG story in India so far, but where is it heading to?

Vision is 3% in the next five years.

Priority is to focus on sedans and SUVs instead of an overcrowded hatchback space. We can fight for meaningful share in SUVs and sedans, instead of being an also-ran in small cars. Eventually, once volumes scale up, a small car can be added

Source:

[rish_arora]

Originally Posted by volkman10

The confused VAG plans for India - Now VW looks a big cars for India - S/CUV's and Sedans!

Hatchbacks( Polo's and Fabia's) will be de-prioritized, final decision should be taken by the middle of this year.

Somehow, I agree with this approach, VW should not try to be a Maruti or Hyundai. They tried and failed miserably, they should stick to their strengths(build quality and powerful engines) and bring in world class products to India. Consumer these days are more aware than they were and are ready to pay extra if they get a product worth the money.

But, 2021 seems too far and too late for VW. 3 years down the line, there are many factors that may change:-the market sentiments, brand perception, competition,etc. VW needs to bring the new products right away.

Not sure what is taking them so long?

[ckranjan]

Volkswagen Group’s India Project 2.0 approved, Skoda to take charge

Source :

https://economictimes.indiatimes.com...w/64697124.cms