Automobile manufacturer Volkswagen is targeting to double its market share in India to three per cent in the next five years as part of the company's India 2.0 plan. The auto major is developing a new platform for India named MQB and is also planning to launch its leasing business in the country soon.
Steffen Knapp, Managing Director, Volkswagen Passenger Cars said the company has chalked out six strategies to double its market share. The company needs to clock around 1.20 lakh units per annum as against around 36,000 per annum. “It's an ambitious target but we have laid the foundation and fundamentals are in place to achieve this,” said Knapp.
Volkswagen is planning to launch new vehicles based on a platform that is being built for India. The first car will be rolled out on this platform by 2020-21, he added.
The new platform will be part of the company's Rs 8,000 crore investment plan, which was announced last year.
The company is also looking at launching a new Sports Utility Vehicle (SUV).
Localisation is key to success and cost-competitiveness in India. The automaker will increase the localisation to 92-93 per cent from the current 82 per cent. The company plans to start manufacturing engines in India and expand the supplier base to supply various parts, including batteries locally.
Volkswagen is also planning to launch leasing operations in India. The backbone for leasing is the used car business network. Last year Volkswagen reported a 35 per cent growth in this segment.
The two major bottlenecks for leasing is people mindset and legislations. Customers still prefer owning a car, but in the years to come leasing would be one of the major drivers for growth.
Recently, the company partnered self-drive through shared mobility platform Zoomcar. Under the partnership, Zoomcar's customers can subscribe to a Volkswagen Polo at a fixed monthly fee under the Subscribe model. Nearly 200 Polos are supplied under the agreement to Zoomcar.