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Volkswagen to launch first locally manufactured sedan

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Yogima Seth Sharma New Delhi

Volkswagen, a late entrant into the Indian market, is trying to catch up with competitors by expanding its product portfolio in the country. Vento, the German automaker’s first locally manufactured sedan, is the latest in the offing.

Priced at over Rs 9 lakh, the sedan would be launched on Tuesday. Designed keeping in mind the preferences and requirements of Indian consumers, the car, powered by a 1.6-litre engine, would be available in both petrol and diesel variants.

“It will be Volkswagen’s second volume model after Polo and will be coming as a premium entry-level sedan in the country,” Neeraj Garg, director (passenger cars), Volkswagen India, had said earlier. The sedan was a major milestone for the Volkswagen brand in India, he said.

 

Vento would be manufactured at Volkswagen’s Chakan plant, while the company’s other sedans are assembled at its Aurangabad facility. The plant, with an installed capacity of 110,000 units per annum, also rolls out Volkswagen Polo and Skoda Fabia.

Analysts said the sedan, along with Polo, would be a game-changer for Volkswagen India, as it would help the company be price competitive and one amongst equal when it comes to after-sale service.

“The mid-size sedan category is a fast growing segment and, therefore, it is extremely important for Volkswagen to get the cost structure right. Thereafter, it is expected that local manufacturing of Vento will help them be competitive in after-sales service and thereby generate higher volumes in the future,” said Abdul Majeed, national head (automotive practice), PricewaterhouseCoopers.

Vento would also lower the entry price point for Volkswagen’s sedans, which include Jetta, Passat Touareg and Pheaton, as the company plans to position it below Jetta in the premium sedan category. Consequently, it will compete with the segment leader, Honda City, which has average monthly sales of 3,500 units.

“The entire industry is growing. While there is scope for new players, we have the leadership position in the City segment and hope to maintain that in future despite the fact that other players are offering both petrol and diesel versions,” Janeswar Sen, vice-president (sales and marketing), Honda Siel Cars India, said.

According to the Society of Indian Automobile Manufacturers, the mid-size sedan segment, comprising models like Hyundai Accent and Verna, Mahindra Logan and Ford Fusion, rose 38.8 per cent in May at 26,275 units, compared to 18,933 units in the year-ago period.

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First Published: Jul 04 2010 | 12:41 AM IST

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