Volkswagen India plans to double distribution networkSeptember 25th, 2009 - 9:30 pm ICT by IANS
Chennai, Sep 25 (IANS) German auto giant Volkswagen is planning to double its distribution network in India and increase brand spend before its much awaited entry into the country’s small car segment early next year, a top official said here Friday.
“Gearing up to the launch of our high volume model Polo, we are expanding our distribution network. By the end of this year the company will have 40 dealers,” Neeraj Garg, director (passenger cars) of Volkswagen Group India, told reporters here after inaugurating a new dealership.
The company now has 22 dealership outlets in the country, of which two are in Chennai.
Depending on the market, company would further increase the number of dealers, Garg said.
Volkswagen will roll out hatchback and sedan versions of Polo next year from its Rs.3,800-crore plant in Pune.
“This year the B-plus segment will be around 300,000 units in size. The entry of new players will further expand the market,” Garg said.
He added that the company would step up spending on brand promotion activities in the country to meet the mounting competition challenges.
“It is true the Volkswagen brand is not well known in the country. This will be corrected with appropriate branding strategy.”
Volkswagen will bring its popular model “Beetle” to India as completely built unit.
For the current year, Volkswagen hopes to sell 3,000 units of “Jetta” and “Passat”, up from 1,566 units sold in 2008.
“We sold 1,900 units during Jan-Aug this year,” Garg said.
While Volkswagen has no major plans to localise the components for these two premium cars, the company will go in for 80 percent local content for its Polo model, Norbert Hoppel, deputy general manager (parts organisation), told IANS.
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- Polo prices up by 2.9 percent from Jan 1 - Dec 15, 2010
- Volkswagen June sales rise 166 percent - Jul 01, 2011
- Volkswagen Group India achieves impressive sales growth of 180.7 per cent in 2010 - Jan 22, 2011
- Volkswagen eyeing 20 percent market share by 2018 - Feb 15, 2011
- Volkswagen to increase market share to 20 per cent by 2018 - Oct 27, 2010
- Volkswagen launches Passat's next generation model - Mar 29, 2011
- Nissan India sells over 1,600 cars in June - Jul 01, 2011
- Fiat to expand presence in Indian market - May 09, 2012
- Volkswagen unveils Polo model, launch this year - Jan 05, 2010
- Skoda's August sales up 33 percent - Sep 01, 2009
- Audi to relaunch car production in Russia in 2013 - Aug 30, 2012
- Indian auto industry in top gear despite global gloom (Flashback 2009) - Dec 25, 2009
- BMW India to focus on small cities, towns - Jun 08, 2011
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