Volkswagen's Strategic Drive In India: A Focus On SUVs & Electric Mobility

Abhijeet Singh
27 Feb 2024
08:30 AM
1 Min Read

The company's strategy is not static. While the current focus is on SUVs, in response to market trends, there's a clear acknowledgement of the enduring value of sedans.


In India, where the automotive landscape is rapidly transforming, Volkswagen's strategic pivot towards India's burgeoning SUV market and electric mobility marks a significant change.

Speaking to Mobility Outlook, Piyush Arora, Managing Director & CEO of Volkswagen Group - Region India, Škoda Auto Volkswagen India Pvt Ltd, outlined that the journey embarked upon under the India 2.0 program has been one of meticulous planning, deep market understanding, and aligning with the national vision of 'Make in India' for both local consumption and global export.

SUVs: The Heartbeat of India's Automotive Aspirations

Volkswagen's astute focus on the SUV segment is not a mere business decision but a response to India's evolving consumer preferences. With four successful products under its belt and a portfolio that's exported globally, Volkswagen is tapping into the undeniable allure of SUVs among Indian consumers. This strategy is not just about filling a market gap; it's a testament to understanding the pulse of the Indian market, where nearly 30% of the company's production is earmarked for international shores, showcasing the quality and appeal of Indian-manufactured vehicles.

Electric Mobility: The Future Is Now

Arora's insights into the electric vehicle (EV) segment reflect a forward-thinking approach. Volkswagen's experimentation with EVs, including the ENYAQ, underscores a commitment to sustainable mobility. However, the path to electrification in India is strewn with challenges, including infrastructure readiness, customer perceptions, and the high acquisition cost. Despite these hurdles, Volkswagen's determination to introduce EVs in the second half of the year signals a significant shift towards cleaner, more sustainable mobility solutions.

A Holistic Approach To Mobility

Volkswagen's strategy extends beyond mere product offerings. It encompasses a broader vision of mobility that includes road safety, customer education, and addressing the societal behaviours that impact road usage. Initiatives and CSR programmes aimed at education reflect a commitment to societal well-being and safer mobility practices. The balance between catering to current consumer preferences for SUVs and the potential for electric sedans in the future underscores Volkswagen's dynamic approach to market demands.

VW's journey in India is a fascinating study of strategic adaptation and forward-looking planning. The emphasis on SUVs aligns with current market trends, while the push towards electric mobility heralds a new change for the automotive industry.

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