Volkswagen India has shut down two of its sales offices. The first in Bangalore and the second in Delhi. The German manufacturer has its facility setup in Chakan, Pune. They have an annual production capacity of 1,30,000 units or 10,800 per month.
The primary reason for shutting down of these regional sales offices is to maximise profit and lower loses. Volkswagen India has amazing products and build quality, however, they have not been able to capture the Indian market with its products.
The German manufacturer will be utilising its Indian facility to export vehicles, thus, using it to maximum capacity and catering to global markets. It is estimated that roughly 60 percent of their production is exported and the remaining are sold in India.
Sales have not improved for Volkswagen in India and they are betting high on their new products. The German manufacturer will be launching its refreshed version of Jetta sedan in India on 17th of February, 2015. They had recently given its Polo hatchback a mild makeover and priced the model aggressively as well.
Volkswagen currently offers four products in India the Polo, Cross Polo, Vento and Jetta. They have been constantly offering various offers and schemes to attract buyers. The German manufacturer is also contemplating of launching new and India specific models to boost sales.