Volkswagen mulls smaller cars for India as the company looks to increase market share three-fold, Auto News, ET Auto

MUMBAI: Volkswagen does not want to overlook out on the sizeable sub-4 metre motor vehicle section in India as the world’s major carmaker seeks to capture a 3% share of the market place in this country, a prime government reported.

Kick-starting off its India 2. system, the Germany-based mostly automaker on Friday launched its prime-of-the-line SUV Tiguan AllSpace, which will be followed by a few extra SUVs in the next twelve-eighteen months. As the next move, it is hunting at introducing a sub-4 metre hatchback and a little SUV.

“If you appear to India (and) want to be profitable in hatchbacks, you have to be sub-4 metre,” Volkswagen Passenger Autos India director Steffen Knapp reported. Polices in India favour little vehicles with lighter taxation.

Curiously, the Polo hatchback, which the firm presently sells in India, has developed in dimensions globally in its most up-to-date iteration. So, the firm will have to build an India-distinct variation of the Polo, which Knapp named the “backbone” of the manufacturer in the country.

Volkswagen is also contemplating a sub-4 metre SUV amongst other alternatives on its India-distinct MQB-A0-IN system, Knapp reported.

He reported the firm was hectic making a robust basis around the very last couple years, and the new vary of merchandise declared for India was element of the eyesight to engage in a even bigger job in this market place.

Volkswagen has a market place share of just one% in India, with income of twenty five,605 units in the very first 11 months of the fiscal year that finishes this thirty day period, according to business info. To boost its share threefold, the firm needs to take part in the larger segments of the market place, particularly little vehicles, according to Knapp.

Autos considerably less than 4 metres in size account for extra than fifty percent of India’s passenger car market place given that they bring in only one-3% of cess in addition to 28% goods and services tax. The cess goes up to 22% for big vehicles.

Even though the firm will build little vehicles, it will go on to position itself as a top quality manufacturer and chorus from getting into mass-market place segments, Knapp reported.

The firm will discontinue diesel engine alternatives on its little vehicles in the BS-VI routine, Knapp reported. Its larger vehicles assembly the new emission specifications too will originally be readily available only in petrol. Diesel alternatives will be considered for big vehicles later on based mostly on market place desire, he reported.

The BS-VI emission specifications will appear into influence next thirty day period.