Volkswagen Passenger Cars expects to end the current fiscal with sales volumes same as in the previous year even as the German auto giant is kicking off its India 2.0 project to grab higher market share and a leading position in the country by 2025.

During 2017-18, Volkswagen’s passenger vehicle sales stood at 45,239 units, down 9.42 per cent over the previous year. During Q1 of this fiscal, the company sold close to 10,000 units. However, it exported more than 90,000 units out of India in FY18 and 21,000-plus in Q1 of this fiscal.

Sales for the current fiscal will be same as last year. But it is interesting to see Indian customers are prepared to pay more for quality and safety. This trend will help Volkswagen grow sales in the coming years, said Steffen Knapp, Director, Volkswagen Passenger Cars.

Volume drivers

Presently, about 90 per cent of Volkswagen sales in India are to new customers. Majority of its Polo buyers are first-time buyers and that was never the case in the past.

Also, a good number of them are women.“They buy a Polo for design, comfort and safety,” he said.

Polo, Ameo and Vento are the volume drivers for Volkswagen in India now.

Though the company has indicated that its all-new cars, made for India out of its India 2.0 project, will come from 2020, it will roll-out refreshes and upgrades of existing models before that to maintain the momentum.

Also, the company has come out with loyalty programmes and extended warranties for its existing customer base.

“One of our six strategic priorities is loyalty scheme. We are able to move our loyalty rate from 6.24 per cent during end of 2017 to more than 10 per cent now. So, we are now getting a lot of repeat buyers,” he added.

Knapp also pointed out the experience at Volkswagen dealerships had been enhanced and its advertisement campaigns had also been tweaked in regional languages for a stronger appeal to people in the respective States.

Volkswagen Group’s India 2.0 project involves investment of €1 billion in ramping up capacity, increasing local contents in its cars and design and development of vehicles locally.