Volkswagen Seat is looking for a seat in the already overcrowded small car segment in India. This company is planning to further its base and boost up its volumes in India. The addition of Seat to could improve the company’s scale of operation and increase its reach in the market.
The company is however caught in its own trap with the trouble of being unable to differentiate the already existing Volkswagen and Skoda line up. The company is hoping that the offbeat style of the Seat and vacationing attitude of the car will be a craze with the likes of youth and people alike.
Volkswagen Seat will initially make its presence in the neighboring China and then come down to India. Recently Volkswagen has seen an improvement of 12.1 percent in the sales this year. The Seat has been a bit sluggish with the growth rate of 2.3 percent. The entry of the Seat into the developing markets is looked upon to test new waters and in the process help boost its numbers.
The Volkswagen Seat Ibiza is most probably the model to make its Indian debut. The Volkswagen Seat Ibiza hatchback which is on par with the likes of Volkswagen Polo falls between the Volkswagen Jetta and the Volkswagen Passat and is looked upon as rival to the likes of Toyota Innova and the Tata Aria as well. Poor relationships in the past with the Maruti have also dented the company’s progress and hopefully the Volkswagen Up! should salvage some lost pride. Skoda Citigo inspired from the Up! is also expected to get its Indian ticket.
All these high volume cars are built on the same platform, engines and lots of other similar parts in variably lead to huge cost savings for the company. Strategies like this could very well make the company realize its ambition of the becoming the world’s biggest car maker in the near future. In the process to achieve this numero uno tag the company is planning to splurge a mammoth Rs 4.3 lakh crore for the next five years.
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