Auto Skoda In 2023, Volkswagen India anticipates coming very close to breaking even.
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Will Volkswagen close its India operations?
Volkswagen’s announcement that it will no longer produce the Polo hatchback, which has been produced for ten years, sparked rumors that the company may be considering ending its operations in India. But according to reliable sources, Volkswagen has no intention of giving up on the Indian market this early in the launch of its wave of all-new vehicles.
Director of Volkswagen India Ashish Gupta addressed these worries in a direct conversation with ZigWheels, saying “We have the most recent and youthful portfolio at this time. Volkswagen is aiming for a 3% market share in India, therefore I believe that this portfolio will really help us grow our business over the next three to four years.
“The success of these two vehicles, the Taigun and Virtus, as well as the Tiguan, which is the foundation of our future ambitions, is crucial if we want to maintain a long-term presence in India, he added.
Western automakers frequently leave the Indian automotive industry, particularly those who have long-term active participation in the market but have found it difficult to establish a foothold. The most recent example was Ford, which closed its manufacturing facilities in India in 2021 due to years of losses and an outdated model lineup. Because its luxury models haven’t been able to loosen the purse strings of the majority of Indian vehicle purchasers, Volkswagen has frequently been regarded as a brand that errs perilously close to that edge. The VW Group recently announced its new strategy for the Indian market, where Skoda would lead the way with a flurry of fresh and highly localized offers, in an effort to calm concerns about a quick exit.
It’s vital to keep in mind that the Polo hatchback is also quite old, despite being one of Volkswagen’s most consistently well-liked cars in India. Here, sales of the Mk5 Polo began in 2010. Volkswagen released the sixth-gen model for a number of markets in 2017, and in 2021 it received a facelift. As a result, the model that has only recently been discontinued needed a significant upgrade.
Volkswagen Polo: Will it leave India?
After 12 years of “endless acceleration,” India’s beloved Volkswagen Polo is changing.
Volkswagen India, a car manufacturer, came up with the sweetest and most heartfelt method to notify that Polo is leaving India.
One of the nation’s most popular hatchbacks, the Polo, announced its resignation in a touching letter that was shared on social media.
The 12-year-old brand recalled the memorable occasions, like the first time it was produced at Pune’s Chakan facility in 2009 and being showered with cheers at the 2010 Auto Expo.
The note stated, “During my memorable time here, I have traveled to places, loved people, and been welcomed to excursions I had never imagined before.”
Volks, until next time! – When PoloPolo shared something with us, we were compelled to share it with everyone. https://t.co/tlhAhvL7V9
In India, why did Volkswagen fail?
While we are aware that some of Volkswagen’s current problems include competition with considerably lower prices, shifting fashion trends, the demand for SUVs, a lack of a diverse product line, and the company’s inability to keep the Indian market interested in new goods.
How did Volkswagen fare in India?
After 12 years, Volkswagen Polo production in India will shortly come to an end. The brand’s first locally made model, the premium hatchback has been manufactured at VW’s plant in Chakan, Maharashtra, since 2009. It went on sale in February of that year after making its formal debut in India at the 2010 Auto Expo. With over 2.5 lakh sales, the premium hatchback is by far VW’s most popular model in India.
- VW India will prioritize products like the Taigun and Virtus from India 2.0.
- 2018 saw the widespread replacement of Gen 5 Polo with Gen 6.
- There is currently no intention to replace Polo.
So why is VW ceasing production of the Polo? Of course, the age of the product and declining sales are the straightforward explanations, but in the grand scheme of things, production efficiency is the key. The manufacture of the VW Vento sedan, which it will replace, will come to an end with the impending introduction of the VW New Global Sedan, which is rumored to be called the Virtus.
The only vehicles still on the brand’s old PQ platform are the Vento and Polo, and maintaining a production line for just one model (which sells about 1,000 units a month) is just not practical. The Taigun and the new sedan will most likely receive this production capacity.
What vehicle will India’s Polo be replaced by?
Volkswagen India is about to stop producing the Polo hatchback and Vento sedan after 12 years on the Indian market. The Virtus sedan will shortly take the place of the aging Vento. There hasn’t been any word yet about a Polo replacement, though.
The only Volkswagen cars that still employ the PQ platform are the Polo and Vento. In contrast to VW’s India-specific vehicles, which use a heavily localized version of the MQB platform known as MQB-A0-IN, the most recent generation of VW automobiles offered in international markets are based on the MQB platforms. Sales of the Polo and Vento have decreased as a result of the outdated platform and a lack of contemporary technology features. Keeping the models on the market is therefore no longer profitable.
Polo 2022: Will it visit India?
The Volkswagen Polo 2022 is a hatchback with five seats. In November 2022, the Volkswagen Polo 2022 is anticipated to make its debut in India. The Santro, GO Plus, and Tigor will compete with the Volkswagen Polo in 2022. Prices should start at 8.00 Lakh.
Why has Polo been canceled?
Finally, Volkswagen has decided to end production of the adored and admired Polo hatchback in India, and the automaker has no intentions to introduce the following version of the vehicle here. With this, the car’s remarkable 12-year run in India has come to an end.
Volkswagen continued to construct the hatchback against orders even though word of its termination had been spreading since February. At the beginning of April, the corporation even officially released the last Legend Edition and listed the vehicle online.
The last round of deliveries for the hatchback were finished in May, according to our dealer sources, who have now confirmed that they have ceased receiving new orders for the vehicle. Volkswagen has also not sent a single unit since last month, which supports this even more.
It is clear from this that the German manufacturer has officially ended the hatchback. Polo nevertheless managed to sell 1086 units in March and 728 in April even though it was nearing the end. This is despite the fact that the main design is more than ten years old.
The Polo established benchmarks for performance, handling, and build quality in the nation. It was constructed on Volkswagen’s PQ25 platform, which has received widespread recognition abroad. It was the first vehicle in India to pass the Global NCAP crash tests with a four-star rating.
Since its launch in 2010, Polo has seen strong sales success in India, selling between 2500 and 3000 copies per month.
However, after 2015, customers started favoring features over handling and performance, which is when Polo’s appeal started to wane. Volkswagen was discouraged from delivering the newest model to India due to the sub-4 meter taxation regime.
Polo’s future growth was hampered by the German brand’s Dieselgate fine and India’s stricter rules. By receiving a new set of 1-liter engines, the hatchback managed to pass the BS6 regulations despite tremendous effort. However, mounting losses on the vehicle meant finally cutting the cord.
The 1.2-liter TSI engine, which was first mated to a 7-speed DSG, and the 1-liter TSI engine, which was later mated to a 6-speed torque converter, were the best features of the Polo. Both of the powertrains provided incredible performance, earning the hatchback the moniker “hot hatch.”
The Virtus sedan, which the millennial generation longs for and which will be delivered to us tomorrow, is both contemporary and packed with current technology, but the Polo will always be known as a hatchback that provided wonderful driving enjoyment.
Is Polo returning to India?
The global seventh-generation Volkswagen Polo is currently longer than four meters. Volkswagen will need to significantly reengineer the vehicle if it even plans to introduce it in India in order to fit it into the sub-four-meter class and benefit from the GST band.
Volkswagen believes that the costs associated with re-engineering this version of the Polo for the Indian auto market will not be justified by the anticipated sales of Polo in India, perhaps resulting in a loss for Volkswagen. With this choice, Volkswagen has definitively put an end to the discussion surrounding the introduction of a new Polo or any other compact vehicle.
Small cars in India are defined as those under four meters in length and with engines under 1,200cc for gasoline and 1,500cc for diesel. These vehicles are subject to a 28% GST, the lowest rate for four-wheeled passenger vehicles. This requirement by the Indian government is what gave rise to new vehicle segments like sub-four-meter hatchbacks, SUVs, and sedans. Any car that doesn’t meet this standard is subject to additional taxes. This law has caused certain automakers to manufacture some of their goods with the Indian auto market as a top focus.
Volkswagen has indicated that it will be concentrating more on metropolitan and Tier-I cities with the new-generation midsize cars, rather than smaller towns and rural locations, which are the green fields for smaller compact cars, especially hatchbacks. With the release of the Taigun and Virtus models, which are based on the MQB A0-IN platform created by the Volkswagen Group expressly for the Indian auto industry, Volkswagen is attempting to strengthen its position in that country.
Can we purchase Polo still?
The Polo hatchback will shortly be phased out by Volkswagen in India. Volkswagen India has unveiled a limited-edition model of the vehicle named the Legend Edition as a farewell to the vehicle. The cost of the VW Polo Legend Edition is Rs. 10.25 lakh. Volkswagen will formally stop producing the Vento and the Polo once the Polo Legend Edition is gone, and you won’t be able to purchase a new Polo in India after that.
Volkswagen has not yet developed a Polo replacement for the Indian market. The sub-4 metre rule for India’s excise duty benefits is not met by the 6th generation Polo sold outside of India. Therefore, it won’t reach our coasts. However, we can anticipate that VW India will use completely built units (CBU) to introduce the new Polo GTI in a small number of units.
In India, is Volkswagen a success?
“VW sells some of the most durable items in India. According to IHS Markit’s Indian car market analyst Gaurav Vangaal, they now need to break the taboo in order to demonstrate that their service and after-sales expenses are reasonable.
Has Volkswagen lost its quality?
Each brand is given an average dependability rating in the most recent 2021 Consumer Reports evaluations, and the Volkswagen received a rather high reliability rating.
The company received a score of 36, placing it in 24th place overall. This is much lower than brands like Ford (38) and Mini (37) as well as fellow German automakers Audi (46) and Mercedes-Benz (46), but significantly higher than Tesla (29 points) and Lincoln (eight points) (40).
Ranking in the top 30 is a strong sign that a Volkswagen is a dependable vehicle to drive, especially given the overwhelming variety of automobile models available in the United States.
The average annual cost of repairs for a Volkswagen vehicle is less than $400, and the typical duration on the ramp is close to 2.5 hours. This shows that the majority of fixes aren’t too serious (like an engine breakdown), but instead something that can be fixed rather simply.