VW Polo for 4.35 lakhs - Business Standard

amit · 12th August 2009, 11:24

I think the 4.35 lakhs variant would be with the Fabia's 1.2L engine. The better and more buyable variants would easily be around 6.5 to 7.5 lakhs. Still, even a top end variant at about 7.6 to 7.85 lakhs would be a great buy provided they sort out the dealerships , service and spares issue before launch. Since their group company believes that there is nothing wrong that they are doing, VW can look at towards their Italian friends for some gyan.

AltoHoncho · 12th August 2009, 11:42

It is supposed to be targetted at Swift, Getz and Indica for the Indian market. moreover, the price is compatible because this will be manufactured fully out of the Indian plant at chakan.
VW's main margin-earning game is in Passat and Audi brands, with a mass-prod focus on Polo. I think it wont be compromised in terms of specs or features (ofcourse keeping in view what the competition offers). We shouldnt compare the UK variants with the ones in India, even the Swift / Indica / Spark / Nano have differences.

diffsoft · 20th August 2009, 05:55

I was pleasantly surprised to read this.

Volkswagen aims to sell one lakh cars by 2014 - dnaindia.com

A few points of note by VW India:

1. Expect to sell 25,000 - 30,000 cars in 2010 due to Polo hatchback and notchback.

2. The pricing benckmark will be Swift - "Our goal in India is very clear -- we need to be a high volume player. We will not benchmark pricing with group companies (Skoda Fabia) but with segment leaders. Our prime benchmark for the Polo would be Suzuki Swift".

3. A admission to the truth by VW at last that Fabia is not doing well. "Group company Skoda's maiden hatchback model, Fabia, is not doing particularly well in sales largely because of consumer perception of "high price".".

Cheers,

deepakhon · 20th August 2009, 06:20

VW seems to be thinking fine. It is pretty right about the pricing strategy. I finally see an European company which can succeed in India. Hope they also provide good service backup, as opposed to their sister concern.

amit27 · 20th August 2009, 09:33

Rare condour among marketing people I must salute this person for honesty mostly corp marketing is a lot of tripe about how market is not ready for their products , they will deliver superior value and standard lines . Looks like they are thinking in righ direction . Just do it right now !

JVH · 20th August 2009, 09:45

VW should come up with exclusive service and maintenance schemes to compete with likes of Swift. It is a start for them and will be really interesting to see what cards they play.

Quote:

Originally Posted by diffsoft

3. A admission to the truth by VW at last that Fabia is not doing well. "Group company Skoda's maiden hatchback model, Fabia, is not doing particularly well in sales largely because of consumer perception of "high price".".

Really? IMO its not the price. Hell, if not for the engine options it looks VFM compared to Jazz. Their biggest problems lie in A.S.S and the puny engines.

diffsoft · 20th August 2009, 09:56

@amit27 - +1 that it is rare candour, when it does absolutely no harm to speak the truth.

I think VW seems to be showing amazing clarity in its plans unlike other global biggies Toyota / Honda who seem more "tactical" in nature.

It is often forgotten that VW has probably been the most successful in developing countries - it is the largest foreign car maker in China, the largest in Brazil, etc. So they likely know their act better than others in these markets.

Cheers,

Invinsible · 20th August 2009, 10:31

And it would be good if the VW sticks to the great quality and quality parts unlike their US counterparts. My bro had bought a VW Jetta in US last year and the very 2nd day the gearbox failed, they replaced the gearbox and again the next week the brakes failed which could have been very fatal. So he went ahead with filling a lawsuit as soon the Dealer there learnt about this he was ready to upgrade him to Passat. But constant complains of quality even by other owners made him go for complete cash return and went ahead with BMW 1 series coupe. It seems the VW cars supplied in US comes from Brazil. I hope they don't compromise on quality here with products like Polo and Golf which are fantastic products to drive.

reppy · 20th August 2009, 10:39

The US VW's are nowhere near the quality of the European made ones, as per my observations.

freewheelburnin · 20th August 2009, 10:49

Seems like the skoda episode was a learning phase for the parent company.Now that they know the market well...hope they improve the service and overall experience.The pricing seems to be a good move.Hope this translates into better sales and poses stiff competition to overpriced japanese counterparts.If they succeed the prices of cars in the segment are definitely gonna come down.But A.S.S will be the big question mark in the volume market.

neotraveller · 20th August 2009, 11:13

Good decision VW. If you need a successful hatch, you should target swift pricing. Just like Punto!

I've always maintained that hatchbacks prices should be more like swift/Ritz/Punto, not like jazz/i20. At that point I will consider sedans.

McLaren Rulez · 20th August 2009, 13:57

Quote:

Originally Posted by neotraveller

Good decision VW. If you need a successful hatch, you should target swift pricing. Just like Punto!

I've always maintained that hatchbacks prices should be more like swift/Ritz/Punto, not like jazz/i20. At that point I will consider sedans.

I'd rather see at least one carmaker give us a real hot hatch that can be practical too. The Palio 1.6 is too old now but it is the only hatch that I can name which has all the right ingredients. Top engine, brilliant handling, good build and decent comfort at a cheap price. What didn't it have? A boot. That is only an issue for those who have that "sedan is prestigious" perception. VW could give us one of those packages at Jazz rivalling prices or they could give us stripped down boring versions. I really hope they don't ruin the Polo by making it another people carrier. We've got plenty of those already.

Axe77 · 20th August 2009, 13:59

I'm pleasantly surprised at the pricing being suggested in this thread for the Polo. I think their current offerings - the Jetta and Passat - are both overpriced so if the Polo pricing suggestions are true then this will be a departure from their approach until now. Engines offerings on the Jetta are also disappointing so hopefully the Polo will reverse that trend too.

Lets see what they finally come up with and at what price. Fingers crossed.

DAutobot · 20th August 2009, 15:50

The proposed pricing and the styling of the new Polo are certain to attract customers. So the strategy is very much in the right direction as many of you have pointed above. However what concerns me is that VW seem to have only 17 dealers across the country as of today. This is if the data on their website is correct. To setup dealerships and develop competency in servicing vehicles over a period of 4-6 months will be a challenge. If my guess is correct all the other companies in this space would have atleast 10 times the number of dealers.

So while the strategy looks good on paper, it will be interesting to see how VW actually implements it on ground.

harry10 · 20th August 2009, 17:16

2. The pricing benckmark will be Swift - "Our goal in India is very clear -- we need to be a high volume player. We will not benchmark pricing with group companies (Skoda Fabia) but with segment leaders. Our prime benchmark for the Polo would be Suzuki Swift".

^^^ Quiet an interesting statement.
This clearly suggests it may come in 4.5-6 lakh range rather than 7-8 lac as expected by most people jere.
If it does launch at swifts price range i believe its gonna be a sure shot hit.

12th August 2009, 11:24	#76
amit Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 3,717 Thanked: 449 Times	I think the 4.35 lakhs variant would be with the Fabia's 1.2L engine. The better and more buyable variants would easily be around 6.5 to 7.5 lakhs. Still, even a top end variant at about 7.6 to 7.85 lakhs would be a great buy provided they sort out the dealerships , service and spares issue before launch. Since their group company believes that there is nothing wrong that they are doing, VW can look at towards their Italian friends for some gyan.
	() Thanks

12th August 2009, 11:42	#77
AltoHoncho BHPian Join Date: Jul 2009 Location: Bangalore Posts: 581 Thanked: 14 Times View My Garage	It is supposed to be targetted at Swift, Getz and Indica for the Indian market. moreover, the price is compatible because this will be manufactured fully out of the Indian plant at chakan. VW's main margin-earning game is in Passat and Audi brands, with a mass-prod focus on Polo. I think it wont be compromised in terms of specs or features (ofcourse keeping in view what the competition offers). We shouldnt compare the UK variants with the ones in India, even the Swift / Indica / Spark / Nano have differences.
	() Thanks

20th August 2009, 05:55	#78
diffsoft BHPian Join Date: Nov 2007 Location: Bangalore Posts: 773 Thanked: 404 Times	Polo to benckmark pricing with Swift I was pleasantly surprised to read this. Volkswagen aims to sell one lakh cars by 2014 - dnaindia.com A few points of note by VW India: 1. Expect to sell 25,000 - 30,000 cars in 2010 due to Polo hatchback and notchback. 2. The pricing benckmark will be Swift - "Our goal in India is very clear -- we need to be a high volume player. We will not benchmark pricing with group companies (Skoda Fabia) but with segment leaders. Our prime benchmark for the Polo would be Suzuki Swift". 3. A admission to the truth by VW at last that Fabia is not doing well. "Group company Skoda's maiden hatchback model, Fabia, is not doing particularly well in sales largely because of consumer perception of "high price".". Cheers,
	() Thanks

20th August 2009, 06:20	#79
deepakhon Senior - BHPian Join Date: Oct 2004 Location: Bangalore Posts: 1,441 Thanked: 65 Times	VW seems to be thinking fine. It is pretty right about the pricing strategy. I finally see an European company which can succeed in India. Hope they also provide good service backup, as opposed to their sister concern.
	() Thanks

20th August 2009, 09:33	#80
amit27 BHPian Join Date: Jun 2007 Location: Guragaon Posts: 173 Thanked: 0 Times	Rare condour among marketing people I must salute this person for honesty mostly corp marketing is a lot of tripe about how market is not ready for their products , they will deliver superior value and standard lines . Looks like they are thinking in righ direction . Just do it right now !
	() Thanks

20th August 2009, 09:56	#82
diffsoft BHPian Join Date: Nov 2007 Location: Bangalore Posts: 773 Thanked: 404 Times	@amit27 - +1 that it is rare candour, when it does absolutely no harm to speak the truth. I think VW seems to be showing amazing clarity in its plans unlike other global biggies Toyota / Honda who seem more "tactical" in nature. It is often forgotten that VW has probably been the most successful in developing countries - it is the largest foreign car maker in China, the largest in Brazil, etc. So they likely know their act better than others in these markets. Cheers,
	() Thanks

20th August 2009, 10:31	#83
Invinsible Senior - BHPian Join Date: Nov 2006 Location: Bombay Posts: 1,257 Thanked: 62 Times	And it would be good if the VW sticks to the great quality and quality parts unlike their US counterparts. My bro had bought a VW Jetta in US last year and the very 2nd day the gearbox failed, they replaced the gearbox and again the next week the brakes failed which could have been very fatal. So he went ahead with filling a lawsuit as soon the Dealer there learnt about this he was ready to upgrade him to Passat. But constant complains of quality even by other owners made him go for complete cash return and went ahead with BMW 1 series coupe. It seems the VW cars supplied in US comes from Brazil. I hope they don't compromise on quality here with products like Polo and Golf which are fantastic products to drive. Last edited by Invinsible : 20th August 2009 at 10:38.
	() Thanks

20th August 2009, 10:39	#84
reppy BHPian Join Date: Apr 2008 Location: Gurgaon Posts: 521 Thanked: 613 Times	The US VW's are nowhere near the quality of the European made ones, as per my observations.
	() Thanks

20th August 2009, 10:49	#85
freewheelburnin BHPian Join Date: Oct 2007 Location: bangalore Posts: 277 Thanked: 33 Times View My Garage	Seems like the skoda episode was a learning phase for the parent company.Now that they know the market well...hope they improve the service and overall experience.The pricing seems to be a good move.Hope this translates into better sales and poses stiff competition to overpriced japanese counterparts.If they succeed the prices of cars in the segment are definitely gonna come down.But A.S.S will be the big question mark in the volume market.
	() Thanks

20th August 2009, 11:13	#86
neotraveller BHPian Join Date: Jan 2009 Location: Hyderabad Posts: 739 Thanked: 0 Times	Good decision VW. If you need a successful hatch, you should target swift pricing. Just like Punto! I've always maintained that hatchbacks prices should be more like swift/Ritz/Punto, not like jazz/i20. At that point I will consider sedans.
	() Thanks

20th August 2009, 13:59	#88
Axe77 Team-BHP Support Join Date: Jun 2009 Location: Mumbai Posts: 6,915 Thanked: 20,644 Times	I'm pleasantly surprised at the pricing being suggested in this thread for the Polo. I think their current offerings - the Jetta and Passat - are both overpriced so if the Polo pricing suggestions are true then this will be a departure from their approach until now. Engines offerings on the Jetta are also disappointing so hopefully the Polo will reverse that trend too. Lets see what they finally come up with and at what price. Fingers crossed.
	() Thanks

20th August 2009, 15:50	#89
DAutobot BHPian Join Date: Jul 2009 Location: Pune Posts: 34 Thanked: 0 Times	The proposed pricing and the styling of the new Polo are certain to attract customers. So the strategy is very much in the right direction as many of you have pointed above. However what concerns me is that VW seem to have only 17 dealers across the country as of today. This is if the data on their website is correct. To setup dealerships and develop competency in servicing vehicles over a period of 4-6 months will be a challenge. If my guess is correct all the other companies in this space would have atleast 10 times the number of dealers. So while the strategy looks good on paper, it will be interesting to see how VW actually implements it on ground.
	() Thanks

20th August 2009, 17:16	#90
harry10 Senior - BHPian Join Date: Jul 2008 Location: Faridabad/Delhi Posts: 2,713 Thanked: 3,624 Times View My Garage	2. The pricing benckmark will be Swift - "Our goal in India is very clear -- we need to be a high volume player. We will not benchmark pricing with group companies (Skoda Fabia) but with segment leaders. Our prime benchmark for the Polo would be Suzuki Swift". ^^^ Quiet an interesting statement. This clearly suggests it may come in 4.5-6 lakh range rather than 7-8 lac as expected by most people jere. If it does launch at swifts price range i believe its gonna be a sure shot hit.
	() Thanks