 "Volkswagen targets 2-3 times faster growth than Indian PV industry in 2024")
Volkswagen Passenger Cars is targeting a volume sales growth of about 15 per cent in the country in 2024, even as it expects the Indian passenger vehicle (PV) industry to grow by 5-7 per cent in the current year, its India Brand Director, Ashish Gupta, said on Thursday. This means the company is expecting to grow 2-3 times faster than the Indian PV industry in 2024.
But globally, the German automaker is expecting just 3 per cent rise in sales this year, down from 12 per cent last year.
The contrasting numbers, in a way, shine spotlight on rising purchasing power of Indians
In India, Volkswagen Passenger Cars sold 43,700 units in 2023, recording a year-on-year growth of 8 per cent. The Indian PV industry sold 4.1 million units in 2023, which was an 8.3 per cent jump year-on-year.
Volkswagen Passenger Cars India, which is part of the Skoda Auto Volkswagen Group, unveiled its electric car ID.4 in Jaipur on Thursday. It is scheduled to be launched in India closer to the end of 2024.
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When asked how Volkswagen is expecting to grow its sales by 15 per cent in this year, Gupta replied, “Last year, the market ended up growing 10 per cent. This year, even if looking conservatively, the market will grow 5-7 per cent on a very high base... Once the market is growing, you have more customers for you to approach and target and get them to your brand.”
“Secondly, look at the segments that are growing. Taigun segment (which is a mid-size SUV) is growing astronomically. Last year, it grew by about 25-28 per cent. More and more customers are coming into that segment although it is becoming very crowded now (nine companies present in that segment),” he said.
Gupta said Vertus itself is growing in its segment (sub compact sedan) and its rising sales will also help the company in reaching the 15 per cent growth target.
Gupta also explained why he expects the Indian PV industry to grow by 5-7 per cent in 2024.
“It is pretty evident from the first two months itself. In the January and February months, the growth in volume sales is about 8-10 per cent for the Indian PV industry. If you look at the basic fundamentals, one of the best GDP growth in the last decade, moderate inflation rate, foreign exchange rate and crude oil prices, political stability is more or less a given. All the underlying factors that fuel the growth are there,” Gupta said.
On how the company plans to price ID.4 in India, Gupta said it will be competitive in the segment it operates in.
“The competition from our own stable is Skoda Enyaq... There is also the Hyundai Ioniq 5 and Kia EV6,” he added. Ioniq 5 and EV6 are available in India at a price range of Rs 45-65 lakhs.
He said no company globally is sure about the electric car market’s contours -- types of electric cars needed, demand for them, etc-- and it will settle down in the next 2-3 years.
The Indian electric car market will take much longer to settle (till 2030).
“Till then, the companies in India will go through a lot of trial and error and a lot of heartburn,” he noted.
When asked if the company is planning to take advantage of the new electric vehicle policy that the government has recently introduced, he replied that the company will weigh all its options and take the right decision at the right time.
Michael Mayer, Executive Director (Sales - International), Volkswagen Passenger Cars said ID.4 will be brought to India with the goal towards mass electrification.
“India is a key market for Volkswagen…The Indian auto industry now ranks third, surpassing Japan, in terms of volumes. Who would have thought that ten years ago?” Mayer mused.
He said Volkswagen has been a part of the Indian market for the past 14 years. “We will be introducing product offerings in India over the next few years,” he added.