Volkswagen to rationalise dealer network, tap smaller towns for growth

Company says it will in 2019 launch products in 30 different tier 2 and tier 3 cities, which include Tumkur, Warangal, and Sivakasi

Volkswagen Passenger Cars, the brand that accounts for the lion’s share of sales at Volkswagen Group India, sees the slowdown in recent months delaying its goal of growing from just around 1.7 per cent to 3 per cent market share by a year or two.

But it will, meanwhile, rationalise its dealer network, tap smaller towns for growth, and focus on the SUV segment. The ongoing strategy is derived from a six-point agenda, which includes prioritising VW’s people, brand and product, network, corporate fleet, loyalty and digital, VW officials say.

Steffen Knapp, director at Volkswagen Passenger Cars, says by 2021 the German