Volkswagen eyes 15% of its national target from state

Post-recession, Volkswagen India is shifting gears in terms of dealership and plans to sell around 450 passenger cars, including its brands Jetta and Passat, in Gujarat by end of calendar year 2009. Nationally, the Indian arm of the German car maker has set for itself a sales target of 3,000 units by December, 2009.

"So far we have sold a little more than 200 cars in Ahmedabad itself where we have been present since mid 2008. By end of this year, we are expecting to sell 3,000 units in the country, 15 per cent of which should come from Gujarat," said Neeraj Garg, Member of the Board & Director, Passenger Cars, Volkswagen India.

The company, which recently launched its second dealership outlet in Gujarat at Surat, plans to add one each in Rajkot and Vadodara within the current calendar year. By the end of the year 2009 Volkswagen India aims to expand its total outlets to 40.

Of its two passenger cars offering, its Jetta brand holds 80 per cent share in sales and is priced at Rs 14 lakh, while the Passat brand, worth Rs 24 lakh, holds a 20 per cent share. Volkswagen India's Chakan, Pune plant is ready for manufacturing with a capacity of 1,10,000 units per annum.

According to Garg, while Gujarat contributes six per cent to the total passenger car industry in India, the state contributes about 13 per cent currently to Volkswagen India, making it the second most contributing state after Tamil Nadu. In 2008 Volkswagen India sold 1566 vehicles and in the year 2009 the company has sold 1957 vehicles (as of August 2009) across the country.