[LLL]

If they wanna price jetta above civic, then they can forget about India. Mr Mueller is talking a lot of "strategy" but who wants to buy a VW against Honda/Toyota - favorite of Indians. On top of that, VW wants a premium. I guess Polo will be priced like fabia.....LOL.

I guess MR MUeller will be soon sending a report to HQ stating that - "India is a low price maket and does not appreciate the value that Vw brings. Eventhough VW cars are better than Maruti/Honda/Toyota, VW doesnt sell enough cars to justify the presence in India."

[khanak]

if the Laura can sell at 18-19 lakhs, Im sure the Jetta will be able to do the same.

Besides Honda we also love Skoda and VW.

[rangaraj]

What was of interest was this comment:

The group’s production strategy is based on synergies. This is very important. And this is a big chance we have, and we are using this chance, to utilize the plant as a group plant.
Our decision will depend on the volumes, and the volumes will decide our (future) investment.
It means that high volume cars will be made at Chakan, which will be a full scale operation from the paint shop to the assembly, while lower volume models will be assembled at Aurangabad.

Hopefully this translates to the cost base being spread across three brand lines and that they dont look at it purely to make more profit, but reduce the price and increase volumes.. The right price tends to have a hockey stick effect..

[khanak]

Originally Posted by rangaraj

Hopefully this translates to the cost base being spread across three brand lines and that they dont look at it purely to make more profit, but reduce the price and increase volumes.. The right price tends to have a hockey stick effect..

I really dont think they will pass the savings onto the customers. Im not sure what the hockey stick effect is, but the whole outcome will depend on the elasticity of the product and Im sure VW/Skoda's business team is monitoring the situation. Im not sure but I dont think Skoda has the capacity to increase its volumes right away.

[amit]

Originally Posted by khanak

if the Laura can sell at 18-19 lakhs, Im sure the Jetta will be able to do the same.

I think so too.

Besides, I'd buy a VW just for the blue and red instrumentation lights.

[kpbhatt]

i guess VW first need to build a brand image -- they should get a Jat to sell the Jetta in the troubled areas of Punjab and Haryana to start with -- a punchline like -- Mein hoon Jat aur yeh hai meri Jetta might sound appealing ;-)

[sj_koova]

I think we cannot underestimate the future of Jetta in India.
Volkswagen AG consists of the following brands; Volkswagen, Audi, SEAT, Skoda, Bugatti, Cosworth, Rolls Royce, Bentley and Lamborghini. They are huge!

In 1999 Volkswagen was bigger car maker than Toyota and in 2007 Toyota is the largest in the world leaving GM and Volkswagen behind. Does that mean Toyota has better cars??

At least in the US what I see is Jetta is a much respected car than Civic and corolla. That could be because they fall in different category here. Civic and corolla are 1.8L and Jetta is 2.5L here. That makes the difference. In India they seem to be going for 2L engine for Jetta. That is again slight above the Civic and corolla. And we can expect the pricing accordingly.

But I can tell you, if you go for looks, Jetta is nowhere near Civic. Jetta has very plain exterior design (something like Indigo).

[AMATMO]

if i am not wrong Rolls royce no longer belongs to VW,its a part of BMW now

[Nitin]

Sj,as AMATMO pointed out,RR is no longer part of VW.

Also, in the US,the Jetta has lost a lot of its earlier charm,thanks to the numerous recalls on the 2003-2006 versions. Honda & Toyota cars have greater respect anyday,thanks to the reliability factor. True,the Jetta does have a bigger engine.
If a Jetta was pitted against a Civic or a Corolla, a huge chunk of people would favor the latter. Dealing with way too many problems has put VW in a spot that not many want to be in.

[Bimster]

Current Jetta even looks like a Corolla and shouldnt be priced much higher(depending on the specs).But again VW has a tendency to overprice its cars.

[sj_koova]

AMATO, thanks for correcting me.
Certainly Jetta will be an over priced car in India considering the fact that Passat was overpriced.
I think many companies choose one of the two approaches when they enter Indian market.
First category keep their cars as premium brand and target the privileged ones. They are not bothered about the number of cars they sell, but they make sure they meet their revenue by overpricing them. I think this is what VW, skoda and Honda have done. These companies have many of their hatch/small cars in the Europe, but they are very apprehensive about positioning their small cars in India. Their overpricing strategy may not work in this segment and that explains the fate of Fabia.

And second category go after the largest potential market which is hatch/mid-size-sedan and price their cars aggressively. I think this is what Suzuki, Fiat and Hyundai have done in India.

[khanak]

I dont think Honda or Skoda are going in for the low volumes/high margins strategy. Both the companies have a large enough share of their market and manage to sell enough cars.

Also how can you say that the Fabia faired badly, considered its been less than two weeks since it was launched.

[AMATMO]

true khank, and i agree with you too SJ

indeed skoda's strategy is brilliat in a way
you first the recognise their brand as a premium
then they come in with cheaper options so that people bye it with a feeling that ts the easiest way of getting the car of the particular brand

for example skoda octavia has a very good,prestigeous image(i know only in india) in india
so many people who cannot afford an octavia find fabia an easy option to buy of the same brand

same happens with thw VW
today non enthusiast wealthy indians know VW for selling cars like Passat,toureg,pheaton,beetle..so they will find jetta an easiast way of owning a VW cause the other cars i mentioned are very expensive

[amit]

VolksWagen is going to launch the Jetta with it's new 2.0L 140hp clean diesel TDi which conforms to the stringent US emission norms.

Compared to the outgoing 1.9Tdi the 2009 Jetta gets:

- 2.0L 140hp clean diesel.
- 6 speed manual and optional 6 speed DSG.
- starting price of CAD25,575 which is C$1275 LESS then the outgoing 1.9TDi!

If it was India, VW would launch this as a new car named Phetta (son of Phaeton.) Check out the Pictures. Amazing colour!



In this picture the car easily looks like a 18 lakh rupee luxury car. I think Indians will easily line up to buy the Jetta at these prices.






Full Story: 2009 VW Jetta TDi

[AMATMO]

one thing that i would admit is that it would be easier to digest a VW jetta for 17-18lacs than a skoda laura