Volkswagen to overhaul back-end before new launches

VW has committed an additional investment of Rs 1,510 crore over the next six years at Chakan

German car maker Volkswagen, struggling to attract demand in the country, is to try and improve its sales and service support while preparing to introduce new high-volume models.

It is aiming for the below-four metre sedan space, with a launch planned in the middle of next year. Based on the Polo/Vento platform, the new car will compete against Tata Motors’ recently launched Zest and others such as the Maruti Suzuki Dzire, Hyundai Xcent and Honda Amaze.

A sub-four metre sports utility vehicle on the lines of the Ford EcoSport was also in the works, say sources, but not now. On Wednesday, it launched a refurbished Vento, while also adding a new variant of the sedan.

The new Vento is priced at Rs 7.44 lakh, while the new 1.5 TDI DSG variant is priced at Rs 10.49 lakh (ex-showroom, Mumbai). Michael Mayer, director of passenger cars at its India group sales, said: “Part of my agenda is the need to build strategy for the next three to five years. There is obviously the demand for products less than four metres and compact SUVs and sedans are those categories. We will have something for the Indian market next year.

Sales in April-August dipped to 16,185 units, a fall of 34 per cent as compared to the same period last year, according to the Society of Indian Automobile Manufacturers.

About 4.4 per cent growth was reported by the passenger vehicle segment in the same period.

With about 130 sales and service outlets, the company has been strengthening its back-end network, which company sources say was required to bring back consumer confidence. It has been working on reducing the turnaround time on servicing from the earlier three days to two days.

Volkswagen has committed an additional investment of Rs 1,510 crore over the next six years at its factory in Chakan, close to Pune. This includes the Rs 240 crore spent on a new diesel engine plant, expected to be operational by the end of this year.