Why Volkswagen Failed In India

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most recent example was Ford, which closed its manufacturing facilities in India in 2021 due to years of losses and an outdated model lineup.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.

The reason Volkswagen failed.

According to Volkswagen’s analysis, “irregularities” also affect data on CO2 emissions and fuel usage.

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Volkswagen repairs for 1.2, 1.6, and 2.0 diesel engines in Europe are approved by the German Federal Motor Transport Authority (KBA).

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Volkswagen lowers its initial projections for CO2 emissions issues and now believes that only 36,000 vehicles are impacted.

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Michael Horn, CEO of Volkswagen US, steps down, citing a “mutual agreement” with the business.

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Volkswagen said it will provide “significant compensation” and auto buyback offers to its US customers for approximately 500,000 2.0-liter vehicles.

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Audi engines were modified, according to California regulators, to produce less CO2.

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Volkswagen consents to admit guilt in the emissions scandal and pay fines totaling $4.3 billion. The charges involve six Volkswagen officials. [13][14]

In order to settle legal allegations relating to the duty of oversight (Verletzung der Aufsichtspflicht in Unternehmen), Audi has agreed to pay a fine of 800 million euros in Germany[17].

Prosecutors in Braunschweig, Germany, have indicted Winterkorn and four other executives.

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Prosecutors in Germany have filed charges against Ptsch, Diess, and Winterkorn for stock market manipulation.

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Prosecutors in Braunschweig, Germany, have charged an additional six people.

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The Volkswagen emissions controversy, often known as Dieselgate[23][24] or Emissionsgate[25][24], started in September 2015 when the German carmaker Volkswagen Group received a warning that it had violated the Clean Air Act from the US Environmental Protection Agency (EPA).

[26] The government discovered that Volkswagen had purposefully set up its turbocharged direct injection (TDI) diesel engines so that their pollution controls would only activate during laboratory emissions testing, allowing the vehicles’ NOx production to meet US norms during regulatory testing. In actual driving, the vehicles released up to 40 times more NOx. [27] In model years 2009 through 2015, Volkswagen installed this software in around 11 million vehicles globally, including 500,000 in the United States. [28] [29] [30][31]

What caused Polo’s failure in India?

This vehicle has undergone six generations since its 1975 debut, however India continues to receive the most recent generation. The Volkswagen Polo, which was introduced in India in 2010, is a very well-liked vehicle all over the world because to its sturdy construction, outstanding powertrain options, and good dynamic balance. However, because to the small rear seat and expensive maintenance expenses, it didn’t sell as well in India.

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.

Is VW reliable in India?

With more than 10 automobile businesses under their belt, Volkswagen is the top automaker in the globe. The massive German automaker first arrived in India in 2007 and has since dominated the market. Volkswagen is also among the most dependable automakers in the world, with its cars providing affordability, performance, and longevity in a way that very few other brands can match. Here are the top Volkswagen vehicles offered in India, despite the fact that there are more choices available outside of the country.

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.

I want to buy a Volkswagen automobile, why?

Reliability Volkswagens are Reliable Each vehicle comes with a complete package, including comfort, high performance, and lots of sophisticated technology. Add an inexpensive price, and you will undoubtedly get a car that will satisfy all of your driving requirements, including: dependable engine affordable service price. optimum warranty.

Ford left India for what reasons?

In only three months after revealing an unexpected willingness to reconsider its India exit strategy, American auto giant Ford announced that it was abandoning its plan to produce electric vehicles in the nation (for exports), despite qualifying for benefits under the government’s prestigious production-linked incentive (PLI) scheme. The corporation is reportedly close to closing negotiations to sell both of its Indian factoriesthe first is in Chennai, Tamil Nadu, and the second is in Sanand, Gujarat. The Gujarat facility is reportedly close to being acquired by Tata Motors, which has experienced a significant recovery in its India passenger vehicle industry. Meanwhile, talks are ongoing with a number of companies for Chennai, including Ola, sources claimed. The business, which in February of this year expressed optimism about returning to India after first leaving in the middle of 2021 (when it was unable to arrange a joint venture with a local company named Mahindra & Mahindra), is believed to have notified its staff of the most recent decision.

A Ford spokeswoman in India responded to inquiries with the following statement: “Following careful consideration, we have decided to no longer pursue EV manufacturing for export from any of the Indian plants.” We will always be grateful to the (Indian) government for granting our request under the Production-Linked Incentives program and for providing assistance as we carried out our research. The spokesperson stated that Ford had continued to investigate potential alternatives for its manufacturing facilities as part of the ongoing business restructuring in India, one of which had included applying for the PLI scheme that would have allowed it to use its plants as a potential EV manufacturing base. The business stated that as of right now, its previously announced business restructuring is proceeding according to schedule, including looking into alternate uses for our production facilities.

According to the spokesman, we continue to collaborate closely with unions and other stakeholders to develop a fair and well-rounded plan to lessen the effects of restructuring. According to sources, the corporation found it challenging to establish an EV manufacturing facility focused on exports in India while ignoring the local market. Ford decided it would be best to avoid local manufacture in the market going forward after having a negative experience with India in the past. One of the sources said that selling the factories to interested parties seemed to be a better option because they are still in good condition in contrast to the General Motors factory in Maharashtra, whose sale to China’s Great Wall Motors has been delayed because of diplomatic and border tensions between India and China. Ford customers will continue to receive service and support for replacement parts in the market, according to company executives, even though local production plans are being abandoned.