Volkswagen group had announced their investment plans and model strategy for India touted as India 2.0. The group had made Skoda India the lead manufacturer of the group in India. The aim is to invest Euros 1 Billion in India and revamp the entire product range so as to capture 3% of the Indian automobile market. Despite the setback due to the ongoing pandemic and the shutting down of operations, the company has announced that its investment plan is on track.
Volkswagen had introduced the Taigun compact SUV during the Auto Expo 2020. They also launched the VW T-Roc and the Tiguan AllSpace SUVs in March 2020 just before the lock down. The Taigun is a designed for India compact SUV based on Volkswagen’s indigenised MQB A0 IN platform. This car is expected to be launched in mid-2021.
Steffen Knapp, director, Volkswagen Passenger Cars India has gone on record stating that Volkswagen is clearly focussed on their plan. Their investment strategy is unchanged and they shall be launching vehicles once the lock down is lifted.
Though Volkswagen’s plans may get delayed due to the ongoing lock down and the pandemic, they are focussed on attaining a 3% market share in the Indian market. Volkswagen believes that once the lock down is lifted, there would be a surge in demand as people may move towards personal transport in favour of safety.
In view of such belief, they are expecting a surge in demand for used cars as well. Volkswagen has already soled 20,000 pre-used cares in 2019 and they expect the demand to further buildup.
Even after the lock down is lifted, commencing production is expected to take a few weeks till the various glitches in the supply chain are resolved. Also, several workers have migrated back to their home states and it would take time for them to return to work.