Volkswagen Struggling In India

Volkswagen is the only automobile manufacturer in India to offer its vehicles with airbags as standard. They still import some of the components for its vehicles to ensure quality and reliability. However, this has not been the most economical way forward for the manufacturer.

It has been over five years that the German manufacturer has been present in India. They have not grown as expected and have conquered just 2.1 percent of market share. The main reason for Volkswagen vehicles not doing well in India is the cost.

Volkswagen has now decided to increase the production of components to be made in India. The German manufacturer believes this is the way forward to compete in India. It will surely decrease prices of the vehicle. In India currently it is how much you can get for as little money.

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The economic slowdown in India has definitely hit Volkswagen the most, compared to other manufacturers in India. The German manufacturer's vehicles are good value for money products, however, its competitors are offering more for less.

Maruti Suzuki is the leader in terms of sale among four wheeler manufacturers. Hyundai and Toyota are not far behind and with the introduction of Datsun, the market could witness a sway in preference. This is surely not good news for the German manufacturer Volkswagen.

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Currently Volkswagen localises roughly 70 percent of componets, varying from car to car. They plan to localise almost 90 percent of the vehicle as soon as possible. This will be achieved by manufacturing gearbox and engines in India itself.

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