Volkswagen has been struggling here in the US, but in emerging markets the German automaker is among the best. VW has been a big player in China since way before it was cool, and now Mr. Winterkorn and co. are focusing their attention on the booming India market. VW is planning on producing 240,000 vehicles per year in India by 2012, and it's using two small cars to supply much of the volume. The size and price of the Polo compact and the upcoming Up! minicar are perfect for the India market, and Europe's largest automaker plans on building both vehicles at its new plant in Chakan. Up! will go head to head with its low-cost Indian market competition with a price tag in the $7,500 price range.
The Passat has already been on sale in India since November, the next generation Jetta and the ultra-luxury Phaeton are scheduled to hit India's VW dealerships in the next couple years. With VW's vast expertise making and selling its cars in low-cost markets, the company that created the original Beetle has a great chance to make hay in the land of Gandhi and the Taj Mahal.
[Source: Inside Line]
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Reader Comments (Page 1 of 1)
shaofei @ Dec 9th 2007 7:12PM
that's true. I remember seeing the VW santana since I was born 1987. And they are still around. like brand new ones still roll of the assembly line in china. Audi is also very very big in china. half the taxis in china are VW Jetta too. I have no idea how they did it.
Brett @ Dec 9th 2007 7:47PM
Now if they would just bring the Space Up! (please change the name) to the US, I would be one of the first in line to buy one.
Tim @ Dec 9th 2007 8:43PM
It's true, the US is so fooked up with regulations, lawyers and lawsuits that keep good, cheap and economical cars out of the market.
There are many cool small Euro and Asian cars that people would drive in the States.
USA number 1? Not anymore.
asifgrkhan @ Dec 9th 2007 9:09PM
The Passat retails for the equivalent of 60,000 - 70,000 dollars in India.
Skoda sells the Octavia (Mk IV Golf) for 30,000 dollars and the Laura (Mk V Golf) for 40,000 dollars.
No wonder VW needs a car much smaller than the Polo in order to show any volumes.
fm @ Dec 9th 2007 9:20PM
"Volkswagen has been struggling here in the US, but in emerging markets the German automaker is among the best."
Yeah ofcourse look at the cars their making for the US vs the cars for the rest of the world ie Scirocco
Sandeep @ Dec 9th 2007 10:37PM
yeah...VW has little to no presence in their own brand name. The only inroads have been made through the Skoda brand, which has shown that recycling platforms for developing countries at a low price works.
I remember reading multiple reviews panning the Phaeton and Passat (I believe both were tested *in* India) in Autocar India, so good luck to you, VW. You will need it.
nagmashot @ Dec 10th 2007 6:16AM
VW volume of slaes 48billion Euro
VW win after tax 1.4billion Euro
Skoda volume of sales 6.6billion Euro
Yeah Skoda realy helps VW... LOL
VW and Audi have together a win after tax that is the half of the complet Skoda volume of sales...
get your numbers in the right order... In he whole Volkswagen AG empire Skoda is only a sweet bonbon..the true money making mashine is Audi with a net income of 1.9billion Euro..
Sandeep @ Dec 10th 2007 8:32AM
IN INDIA
jeez, I'm not dumb enough to propose that the budget subsidiary makes more than its parent globally...
jsjs @ Dec 10th 2007 12:23AM
Uhh, the European auto market is even more heavily regulated than the US.
And lawsuits have little to do w/ cheap/economical autos and more to do w/ poor design, etc.
tex @ Dec 10th 2007 1:35AM
Get real. You are full of beans.
Example: Ford makes terrific cars for the Euro market, the Ka, Focus (their version) and Mondeo for starters. Design is way better there than with the US cars.
Example: You can't get features in the US that you can in Europe, launch control and key fob controlled convertible tops, to name just a couple. Reason they're not in the US? Lawyers and lawsuit fears.
Remember, ABS and Nav systems were available for years before they came to the US. Reason: lawyers and lawsuit fears in the US.
That's not to mention all the diesel-powered vehicles that are in Europe and getting 50mpg or more. Reason they're not in the US? US regulations.
lovice @ Dec 10th 2007 6:34AM
I think the problem is with the US political system.
Since the it's illegal to found political parties or election from private companies (ie. big fuel companies) in Europe, their policies are always more objective, and more towards normal people like you and me.
However, in the US the whole founding of political parties and elections are relied on those "big companies". Of cause, the policies form the US government are just another reflection of those "big companies". Coz at the end of the day, it's them who give the US politicians' power and most of their huge salary too!
Hooper @ Dec 10th 2007 10:12AM
"The size and price of the Polo compact and the upcoming Up! minicar are perfect for the India market..."
I don't think the Polo is a compact car. The Rabbit, GTI and Jetta are the cars that VW offers in the compact segment in the U.S. Wikipedia lists the Polo in the supermini segment, i.e., it would be a subcompact in the U.S.
tariq @ Dec 10th 2007 11:16AM
people in developing countries want reliability out if their cars. how come VWs doing so well?
traditionally markets in developing countries have been dominated by the japanese brands and luxury car market have belonged to the germans(and a long time ago to the americans). but now the japanese have made inroads in the luxury segment so it would be interesting to see how VW convinces people in developing countries to buy their cars
nagmashot @ Dec 10th 2007 12:01PM
there was never a country were japanese showed up first.. they only show up in already existing markets..
good examples
China..many years VW was the only non chineses car producer there..
Sout Africa.. VW was there long befor the first japanese
South america.. VW has plants in nearly every south american nation.. mexico, argentina, brasil
Japanese only sowed up if there was already a existing car market foundet by US or Europen companys..
VW´s qualtiy is good..you don´t become the 4th largest car producer in the world by selling rubbish. Only the USA recive the trash produced in Mexico..
In China a market as large as the USA, VW is according to JD power Asia Pasific 3th best brand in IQS ... behind 1th palce Audi(3th time in a row) and 2th place Buick.
In South africa the japanese brands are only average or below average in JD. Power IQS.. only Honda is good at 2th place behind BMW ahead Mercedes even Lexus is there not in the top5.
No commercial brain washed consumers.. ;)
Go to africa and look what poor people buy... old Mercedes.. and ask why poor people buy expansive German technic.. easy to fix and run for ever..
http://w123-club.de/html/bildergalerie/Kaleidoskop/ArabEmir1.jpg
http://w123-club.de/html/bildergalerie/Kaleidoskop/AfrikaWerkstatt.jpg
:) @ Dec 10th 2007 2:23PM
I hope that if the Up! comes to the US it will come from a different plant other than India, China, Poland, Mexico or 3rd world.
joginder @ Feb 4th 2008 7:01PM
well the vw up! seems to be good car given that its price competitively ...just wanted to know will the suzuki a-star put p competition .??? well i liked the concept of rear engine in the up! even though a small car .. but just the rear engine thing gives u a porsche kind of feel .. i think its the porsche effect on vw!!!!!!
and about the styling ..well its time to revolutionize the car scene ... so the desing of the a star and the up are awesome !!1
kudos vw!!!