#45 Volkswagen in India

As the German paper Handelsblatt reports, Volkswagen intends to increase it’s marketshare in India from currently less than 2 percent to about 10 percent. Ambitious plans, especially when one looks at the competitive environment. Although Volkswagen will be introducing the base model of its new Polo at just under 7,000 Euros, its competitors are still ahead in the marketing battle based on price. General Motors’ Beat base model will cost only about 5,000 Euros and Tata’s Nano starts at 1,700 Euros. Other competitors such as Renault, Nissan, Toyota and Honda are on the way to position cheaper models as well. India will be a difficult nut to crack for Volkswagen. Then again, to which other markets would carmakers turn to nowadays. Despite the global economic crisis, India’s market for cars grew by an astounding 16 % in 2009.

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