German auto maker Volkswagen has set a target of 3 per cent share in the passenger vehicle market in India. India is also one of its key future markets. VW is looking to enhance the brand awareness and also strengthen the range of products in India to fill gaps in its portfolio and tap the fast moving segments. Considering India as a strong future market, Volkswagen aims to strengthen their footprint in the country. The company has a clear vision of where they intend to reach and strive to build a sustainable business in India.
The company is currently working across all activities, starting with the brand, network as well as the digitalization and product portfolio in order to get the 3 per cent market share in the future. The company aims to come to India as VW brand. Currently, VW has a market share of about 1.5 per cent in the country. Its passenger vehicle sales in India stood at 30,46,727 units in the year ended March 2017 as against 27,89,208 in the year 2016.
The achievement of an increased market share depends on the product cycle. The brand will aim to create a product portfolio, network and investments across digitization in order to achieve the vision of a higher market share. The brand has established a good level in terms of unaided awareness, which is a measure of the number of people who express knowledge of a brand or product without prompting. Although, it still has a long way to go as an automotive manufacturer. The company has a huge potential to grow in the unaided awareness since they have a value of only 34 per cent, which shows that either people are not aware about the brand or do not consider the brand. Volkswagen is constantly filling the gaps in its product portfolio. There are various interesting segments coming up in the areas where the company is planning to enter.
Regarding its product portfolio, the company has not decided on any model below the newly launched premium SUV Tiguan. The brand may look to add a few more dealerships to the existing 125 dealerships across the category II cities where it is not currently present as a part of the strategy to achieve the target. The strategy of the brand will be about exploiting higher potential in larger cities and using different ways of addressing the needs of the consumers.
By building a presence across Tier II and III cities, the brand will be able to create awareness about the products and cater to the fast growing consumer interest across the nation. With a strategic marketing plan and a product portfolio, it will be able to achieve the targeted 3 per cent market share in the country.