Fundamentals of Management

Company Profile: Volkswagen India

Kartik Sharma Harshit Bassi BBS-1 B

Introduction
Volkswagen is a German automobile manufacturer. The original and biggest-selling marque of the Volkswagen Group, which also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Skoda marques. Europes largest automotives company.

Volkswagen India:
Volkswagen India Private Limited is its Indian arm. It assembles, manufactures and distributes Volkswagen vehicles in India. Entered the Indian market in 2007. First launch was the sedan, Passat in 2007. Followed by the Jetta, Touareg, Beetle, Polo, Phaeton and Vento.

Product Line and Mix

Volkswagen India

Hatchbacks

Sedans

SUVs

Polo

Beetle

Vento

Jetta

Passat

Phaeton

Touareg

Polo

Beetle

Vento

Jetta

Passat

Phaeton

Touareg

Ownership and Structure

Publicly traded company- Issues ordinary shares and preferred shares. Complex Ownership Structure.
Shares
50.76%
2.37% 20.26% 17% 9.61%

Held By
Porsche Automobil Holding
Porsche Holding GmbH State of Lower Saxony Emirate of Qatar Widely Held

Profile:
Type: Subsidiary Industry: Automotive Founded: 2007

Headquarters: Pune, Maharashtra

Key people: Mr. Joerg Mueller, President and MD Mr. Neeraj Garg, Director(Passanger Cars)

Parent: Volkswagen Group Sales India

Website: www.volkswagen.co.in Number of Products in the portfolio: 7 Production Output (Calendar Year 2010): 32,627 Units Number of Plants: 2 (Chakan; Aurangabad) Number of Dealerships: 73 Current Market Share: 2.8 % Number of Employees(2010): 4537

New Product Development Strategy

The company is planning a low-cost vehicle somewhere on the lines slightly higher than the Tata Nano. The company also plans to introduce many of its globally successful models to the Indian Market in a carefully chalked out strategy over the next two years.

All-Electric Vehicles:
Two-door E-Up! electric car concept was debuted at the 63rd Frankfurt Motor Show in 2009. Uses a 60 kilowatts (82 PS; 80 bhp) all-integrated drive electric motor. Zero-Emissions-Vehicle(ZEV). To go on sale in 2015.

Hybrid-Electric Vehicles
Volkswagen and Sanyo have teamed up to develop a battery system for hybrid electric vehicles. Plans on to build compact hybrid electric vehicles and hybrid versions of hatchbacks Polo and Golf, with gasoline and diesel engines. Also underway at Volkswagen's Braunschweig R&D facilities in Northern Germany is a hybrid version of the next-generation Touareg. VW also announced plans to introduce diesel-electric hybrid versions of its other popular models, beginning with the new Jetta, followed by the hybrid version of the Passat in 2014.

Upcoming Models:
Volkswagen Up!
(Expected Launch: December 2011)

Volkswagen Tiguan
(Expected Launch: June 2012)

 Volkswagen Golf
(Expected Launch: July 2012)

Vision
The Mach 18 Strategy: Mach 18- The programme launched in 2008 by Volkswagen wherein the aim is for the VW Group to top the automotive world in every way possible by 2018. in terms of most units produced and sold. in terms of efficiency of manufacture process. in terms of market cap and also in terms of profitability.

Objectives of the Mach 18 strategy are: To boost the work presence To improve the market share. To increase the sales volume from present 6.5 million to more than 10 million cars.

Global strategy depends very much on improving the situation in emerging markets like India.

Specific Aims
To Expand the Dealership Network to 100+ from the present 72. To maintain a 15% Compounded Annual Growth Rate in India over the next five years. To grab 20% of the Indian Market by 2018

Performance and Sales

Modest sales figures in 2007-2008. Company picked up from 2009, selling 3000+ units. Landmark year: 2010. Sales grew to almost 32000. Dealerships went from 40 to 70+.

Sales Comparison: 2010 to 2009

25000

20000

15000 2010 2009 10000

5000

0 Polo Vento Jetta Passat Touareg Phaeton Beetle

 2011: Polo and Vento continue their exceptional run. Vento: The most visible symbol of VWs success in India. The Vento overtook Honda Citys sales in March 2011.
6000

5000

4000 Volkswagen Vento Honda City 2000

3000

1000

0 January February March April May June

VWs Indian Success Story: Continued

Major presence in all 4 segments vizHatchbacks (Polo; Beetle), Sedans (Vento; Passat; Jetta; Phaeton), SUVs (Touareg) VW today has managed to carve out a 2.8% share of the 87,500-crore Indian car market, which grew at 30% in the last fiscal year.

Key Strategies
Volkswagen adopted a top-down introduction strategy for the Indian to arrive at a competitive pricing. The first step was to create an image of a sophisticated, innovative European volume brand. This was done with the Passat and the Touareg, both premium luxury cars. A 360 degree approach to deliver global quality at local prices. VW has unabashedly played the price card. VW plans to manufacture and localize volume in India. A major aim is to create an unparalleled structure for service and after-sales service.

Targeting
Limited edition variants, state-of-the-art add-on features, extended warranty at nominal costs and festive offers have been a constant feature in VWs portfolio. Breeze Branding: Recently came up with special edition Breeze variants of the Polo and Vento. Include a state-of-the-art bluetooth-enabled touchscreen multimedia player cum navigation system, premium materials and cushioning, a pair of rear seat pillows that conflate style and comfort.

Vento IPL Edition:

During the Indian Premier League 2011, Volkswagen came up with an IPL Edition of its Vento Was received very well in the market.

Dealership Network
Volkswagen is spreading its network very well in India. The company already has 70+ dealerships in India across 63 cities. Plans to take this number to 100+ by 2013.

External Factors
RBI Interest Rate Hikes Inflation Hike the prices of Petrol and Diesel. Price cut by Honda

Thank You! :*