Volkswagen to enter Indian EV market soon with ID.4
Volkswagen's inaugural all-electric model, the ID.4, is slated to launch in India by the end of 2024. Ashish Gupta, Brand Director of Volkswagen, stressed that the ID.4's introduction is more of a declaration of intent rather than a primary growth catalyst for the carmaker. He stated that the e-SUV captured everyone's attention at the Annual Brand Conference 2024 and is a first step toward the company's future mobility solutions. Details regarding pricing and model variants are currently being evaluated.
Affordable models drive Volkswagen's growth strategy
Gupta suggested that Volkswagen's expansion strategy in India would largely depend on models priced under Rs. 20 lakh, such as the Taigun and Virtus. The upcoming ID.4 will be imported as a Completely Built Unit (CBU), with only a limited number of units available initially. During the annual conference, he emphasized that the brand's cars in India strive to 'marry performance, safety, features and an affordable cost of ownership experience.'
Tier 2 and Tier 3 cities fuel the carmaker's growth
Gupta pointed out that significant growth for Volkswagen has been observed in Tier 2 and Tier 3 cities, areas traditionally dominated by competitors like Maruti Suzuki, Hyundai, Tata Motors, and Mahindra. He elaborated on how evolving consumer aspirations in these smaller cities have positively impacted the brand. He said, "What has changed over the last five years is that those aspirations are meeting the capabilities of people to pay, they are willing to spend."
Market positioning strategy in India
Outlining Volkswagen's market positioning strategy, Gupta explained that the brand does not aim to compete with mass-market segments. He said, "I would not even claim that I would want to compete with the mass volume segments in India. We have found our space." "A brand is not built on how many segments you are in. A brand is built on whether you are true to your strength and do you deliver on the promise made to the customer."
