Volkswagen is emerging as a key constituent in the passenger car export map of India as it focuses on exports as a hedge against falling sales in the slowdown-hit domestic market.
While the group is cautiously optimistic about Indian market demand in the current calendar year, its exports from India continue to grow, especially in the sedan segment.
It has been shipping ‘Made in India’ premium sedan Vento to several markets including Mexico, which is presently a major consumer of the India-built Vento. Its exports have been increasing month-on-month basis.
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During 11 months of this fiscal, small car exports (include both mini and compact segments) were down by five per cent at 391,418 when compared with a year-ago period. But sedan exports were up 32 per cent at 111,435 units, driven mainly by Nissan and Volkswagen. Both the brands have been battling with falling volumes in Indian market, while their exports remain strong. After a double digit fall in its passenger car volumes in India in 2013, the group expects to report better volumes this calendar year.
Volkswagen group’s passenger vehicle volumes in India fell by 19 per cent in 2013 at 92,561 units compared to 114,084 units in 2012. “In India, demand was affected in particular by high inflation and increased fuel prices. We expect demand to stabilise in the coming years, however. The group is currently consolidating its activities in this difficult environment. Despite the current situation, India is still a strategically important market of the future for the group,” said Volkswagen Group Annual Report for 2013.
Recently, Managing Director of Volkswagen Passenger Cars in India Arvind Saxena quit the company and joined General Motors India.
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