NEW DELHI: Volkswagen Group, the world’s largest automobile company, is eyeing to grab a significant share in India’s passenger vehicle (PV) market after failing to achieve the desired result in its first innings. This time, the group, through its sister brand Skoda Auto, is eyeing a five per cent share in the domestic market by 2025, when India is likely to become the third largest market by volume.
“India is a fast-growing PV market and is likely to emerge as the third largest market by 2025. As part of our India 2.0 Project, Skoda, along with Volkswagen, would like to become a significant player by having five per cent of the market,” said Bernhard Maier, CEO, Skoda Auto.
To hit the sales target, Skoda will invest 1 billion Euros (`7,900 crore) in the Indian market to ramp up its production, set up engineering and design units and double its dealership network in next three years.
“A key focus of our new journey would be to increase our reach and give the best of customer services by keeping the prices competitive,” Maier said. To boost the cost effectiveness of its vehicles, the company aims a localisation level of over 90 per cent. At the same time, it wants the premium quotient to remain in its vehicles; the aim is not just to increase sales, but also customer satisfaction, he said.
At present, the Czech carmaker, along with its German auto major, is a minor player in the Indian PV market with less than 2 per cent share.
The company is planning to launch one product every year, from 2021 to 2025. Its first model for India will be a compact SUV based on its new MQB platform, and will have its global premier in India in the latter half of 2020.