Volkswagen eyes for 95% localisation of components for Virtus, Taigun

As Volkswagen India eyes a 3 percent share of the Indian passenger vehicle market in the next two years, it is increasing its localisation of components for its two key models - Virtus (Sedan) and Taigun (SUV) - to 95 percent from a current 92 percent.The company currently enjoys a 2.4 percent share of the market.

Speaking with Business Standard about their localisation plans Ashish Gupta, Brand Director of Volkswagen Passenger Cars India, stated “Our cars are already up to 90 percent localised however we have a target of almost 95 percent in our Virtus and Taigun models which are assembled and produced in India in our Chakan (Pune) plant, so there is already a high degree of localization and there is also focus on localization.”

Abbey Thomas, Head of Marketing & PR of Volkswagen India stated “The market share would definitely increase reaching out to at least 3% in the next 1.5 to 2 years which is really huge considering our country sells around 3.7 to 3.8 million cars annually.”

In the second quarter of this year, Volkswagen Passenger Cars India, like others in the industry, encountered supply shortages due to global component issues. However, they anticipate smoother operations in the latter half of the year.

Production ramp is however, not a concern. Gupta further added “Flexibility is built into our manufacturing process where we have the option to escalate shifts and expand the production lines to successfully meet the peaks and troughs of demand.” The company said that in the second quarter of this year, they have faced some shortages due to global component issues, like rest of the industry, but is confident that the second half of the year would not have supply issues. 

Volkswagen also mentioned their production strategy aligns with demand and they are ready to scale up production to reach a wider audience, supported by their technological capabilities and their manufacturing facilities.

Volkswagen is actively extending its presence to smaller cities and towns across the country through its current product portfolio, encompassing all markets.Volkswagen India also rolled out its new brand campaign ‘You’re in a Volkswagen’ around the festive season to captivate a larger set of audience and boost its sales.