Volkswagen Wants To Transform Into An SUV Brand

The Competition for SUV has intensified in the past few months. We saw new entrants in the segment such as Kia kick start its operations in India with its new SUV named Seltos and MG Motors introduced Hector. Recently, PSA also announced that they will be entering India with the SUV named PSA Citreon. Joining them is the already established German Automaker, Volkswagen, who now want to transform into an SUV brand in the Indian market.

Every new product from Volkswagen in India will now be an SUV, a top executive at the German automaker said, as the company attempts to revive its fortunes in a market where its share has slipped below 1%. Volkswagen, which is present in India for 18 years, will continue to roll out existing car models and face-lift them when required, but its future will be all about SUV.

Volkswagen, which entered India in 2001 with the Skoda brand and introduced the VW brand in 2007, has struggled to make a mark amid stiff competition from Japanese and Korean rivals. In FY19, VW’s wholesale dispatches stood at 34,859 units, accounting for only 1% of India’s passenger car market. Group company Skoda Auto’s market share was even less at 0.5%.

The emergence of SUVs is due to multiple product launches by all major carmakers. It is also seen especially in the urban markets that compact sedan and hatchback category customers in their natural progression are upgrading to SUVs. We will have to wait and watch how Volkswagen transforms itself and the reactions by the consumers. Do you think this is a right move? Do share your views in the comment below.


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