Volkswagen has been using a top-down tactic in India.
It launched in the Indian market high-end models like Jetta and Passat in sedans, the Touareg in the sports utility vehicle and, the iconic Beetle.
The company is intending to grab 8-10% market share by 2015, and entered the mass market hatchback sector this year by introducing Polo.
The company will be launching a sedan from the Polo model. The car, called Vento will be launched in September-October.
Commercial manufacture of the car has already started at the company’s Chakan factory near Pune. The company expects the car to sell well due to cheap car loans.
Vento will be placed in the competitive high-end mid-sized sedan, C segment which is led by Maruti Suzuki (SX4 and Dzire) having a 36% market share, followed by Honda City having a 16% market share.
Ulrich Hackenberg, board member, Volkswagen, said the company is considering achieving a significant market share in this segment.
But, it will mainly depend on the price of the product, according to an industry expert. While the company did not disclose the price, it said the car would be competitively priced. Industry sources say it will cost between Rs 9 lakh and Rs 10 lakh.
Hackenberg stated, “At present the car has 65% of localised material and in another 1.5 years’ time it will go up to 80%. Last year we sold 3,000 cars in India and by the end of 2011 we will have a significant market share.”
Vento, will be sold in both diesel and petrol models, and has a 4 cylinder, 1.6 litre 100 bhp engine.