Volkswagen and its Top-Down Approach in Launching Cars in India

Volkswagen, Europe's largest automaker is employingit launched its small car, the Golf and its derivatives.
a top-down approach in launching cars in India. AndAnd since India is considered to be more of a sedan
within the span of two years the automaker plans tomarket, Volkswagen India would first try to sell sedans
bring its small car followed by what seems to be alike the Passat and then follow it up with the Golf and
mini car under the Maruti 800 category to India.its derivatives. For a great part of its proposed lineup
After recently announcing that it will start introducingthe automaker is expected to retain 55:45 ratios
the all new Passat as its entry vehicle in India,between diesel and petrol. Mr. Bruedgam further
Volkswagen plans to launch next what it calls theadded, "We will begin our sourcing activities from April,
A-Class, the Golf, and its derivatives. According tofirst for the cars to be made here and then for the
Pierre Bruedgam, a member of the board purchasing,global market."
Volkswagen India, "We will launch a new car everyVolkswagen officials after visiting India saw that a
year. This year, it is the Passat sedan, a B class car,single purchase office may not be enough and said
which will be launched in September. And for nextthat they may need to open other offices in the other
year, the A Class, which comprises the Golf and itstwo auto hubs located in Delhi and Chennai. VW
derivatives are going to be launch. It will then beofficials have also stated that logistics is an important
followed by volume segment small car which will beconsideration when sourcing for global operations if the
offered as notchback and hatchback for 2009. In ourcompany aims to remain competitive. They also added
terminology, the small car is A Zero Class. We arethat Europe's largest automaker may also get some
also looking at the A Zero Class, which is theof their metal products from India particularly for its
equivalent of the Maruti 800."needed volume products. And since a great number of
Mr. Bruedgam was in Pune for the inauguration of it'sVW cars are expected to be sold in India, the
off site office and at the same time was looking forautomaker would also make sure that aftersales
some interested local sourcing for the e410 million,services such as repairs are made available to the
110,000-capacity car plant at Chakan. Volkswagen Indiacustomers that is, aside from the Volkswagen Repair
is expecting to reach the 110,000 capacity by 2009 asManuals that goes with the vehicles.