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India: To perk up sales, Volkswagen to focus on dealers, servicing

From mydigitalfc.com| March 19 , 2013

mydigitalfc.com (Chennai, India) - After a marginal rise in volumes in India in 2012, Volkswagen group is looking at better growth in the coming years with stronger focus on dealer expansion, service and spare parts areas.

"We expect the Indian market to develop positively in 2013 and 2014," said Volkswagen group annual report for 2012, adding, "In 2012, Passat, Audi A4, A6 and Skoda Rapid models recorded highest growth rates in India."

"Volkswagen group deliveries in India again increased in 2012 despite difficult conditions. High inflation and high fuel prices in particular impacted the demand. We are forecasting that demand in the Indian market will continue to grow in the coming years. Going forward, we will significantly expand our dealer network and invest in training for sales and service staff as well as in genuine parts logistics as to further boost growth in India," it stated.

Thanks to Skoda and Audi brands, Volkswagen group's volumes in India reported a marginal rise in a sluggish auto market in the country. Total sales of the group in India were up 2.1 per cent at 114,084 units in 2012 compared with 111,689 units in 2011.

The year 2012 ended with a mixed note for Volkswagen group in India. While it was a bad year for Volkswagen Passenger Cars division, which sells Polo, Vento, Jetta, Passat, Touareg and the Phaeton in India, other divisions such as Skoda and Audi did well during the year in India.

Volkswagen passenger car division's sales were down 15 per cent at 66,873 units in 2012 compared with 78,402 units in 2011. Skoda saw its sales grew by 13 per cent at 34,678 units and Audi's volumes zoomed and the luxury car brand ended 2012 with 63 per cent rise in total sales at 9003 units. The group also sells its luxury brand Porsche's models in India and is reported to have sold over 200 units in the year, according to the statistics of Siam.

However, during the first two months of the calendar year, Volkswagen passenger car divisions' saw a marginal rise of volumes were up 3 per cent at 12,730 units, While Audi volumes were up 19 per cent at 1512 units. But Skoda saw significant drop at 42 per cent at 4,004 units," according to Siam.

During the second week of this month, Volkswagen group re-aligned its top management in India. Gerasimos Dorizas, managing director of Volkswagen group sales India became chief representative of the Volkswagen group in India. Also, Mahesh Kodumudi was appointed as president and managing director of Volkswagen India. Kodumudi joined the Volkswagen group in 2008 and was appointed executive director, Purchasing of Volkswagen India.

Last week, Martin Winterkorn, chairman of Volkswagen, told the annual media conference in Germany that Volkswagen's future is increasingly being decided in markets like China, Russia, India among others from where most of the future growth would be generated.

 

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