Just a few days ago, it was reported that the German automotive giant Volkswagen will not be bringing back the Polo. However, during the interview, the brand director of Volkswagen also shared a huge statement. He said that they are not looking to enter the sub-4m SUV segment or the sub-Rs 10 lakh market. The Volkswagen official added that they do not want and can never become a volume brand like Maruti.
Volkswagen’s Shift in Strategy
Volkswagen’s brand director, Ashish Gupta, discussed Volkswagen Group’s re-entry into the sub-Rs 10 lakh segment. He stated that while their sister brand, Skoda Auto, is gearing up to introduce a subcompact SUV, Volkswagen has taken a different path, choosing to focus on a more upmarket positioning.
Gupta stated that Volkswagen now does not want to compete with volume-focused brands in India. Instead, Volkswagen is now emphasizing the brand’s strategic shift towards sustainability and higher price points. The average selling price of Volkswagen vehicles in India has more than doubled in recent years, he highlighted.
Distinctive Positioning in the Market
Explaining his statement that Volkswagen does not want to be Maruti, he stated, “We have successfully repositioned the Volkswagen brand. Whether it is through the products we have introduced, our communication, experience at our dealerships, or cost of ownership, we have moved the brand upwards, and we’d like to keep it there because that is what gives us sustainability.”
He added, “Earlier, we used to operate at an average price point of Rs 7 lakh with the Polo and Vento. Now, our average price point is Rs 16 lakh. Our aspiration is not to be a Maruti [Suzuki], and we can never be Maruti or Hyundai. I believe we have found our space and we want to stay true to it.”
Gupta highlighted that Volkswagen has decided not to re-enter the sub-Rs 10 lakh segment. This is because they are carving out a niche separate from market leaders like Maruti Suzuki and Hyundai.
By maintaining a higher price point and emphasizing quality and innovation, Volkswagen aims to establish itself as a premium alternative in the Indian automotive landscape.
Learning from Past Mistakes
The decision to stay clear of the sub-Rs 10 lakh segment follows Volkswagen’s previous missteps in the Indian market. Notably, the discontinuation of the Ameo sedan was what triggered this shift. This failed attempt highlighted the challenges of capturing market share in a highly competitive and price-sensitive segment market like India.
As stated above, Ashish Gupta previously also highlighted that although possible to relaunch the Polo, they will not be doing this anytime soon because it will not be feasible for them. To launch a Polo in the already shrinking hatchback market would be going backwards, added Gupta.
Skoda’s Role Within the Volkswagen Group
Ashish Gupta, during the interview, also added that Volkswagen has redefined its position in the Indian market. Meanwhile, their sister brand Skoda Auto is taking the lead in catering to the affordable segment.
Skoda in the upcoming months will be launching a sub-compact SUV priced below Rs 10 lakh. With this new product, Skoda aims to capture market share and double its sales volume within the first year.
The post Don’t Want To Be Maruti, Says Volkswagen Brand Director: What He Really Means! first appeared on Cartoq.
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