Volkswagen focusing on premium product segment in India


German automaker Volkswagen has said that it will be focusing on its premium product segment in the country as nearly 45 per cent of passenger vehicles sold here came from models priced above 10 lakh so far this year. The company is following into its global product strategy, a senior official told PTI. About three to four years back, the company was operating in a price bracket of 6.5 lakh to 7 lakh but has now moved up to an average price band of 16 lakh.

In 2018, around 18 per cent of the cars sold in India were above 10 lakh. Last year, it was at around 40 per cent and this year in first quarter it has already moved to about 43 to 45 per cent, Volkswagen Passenger Cars India Brand Director Ashish Gupta said. He added that the brand doesn’t compromise on features.

Gupta added that the brand plans to move up on the premiumisation stage. “We will not be going back to sub-four metre of the Polo segment as such. We have moved the price points and the brand up,” he added.

According to data from Society of Indian Automobile Manufacturers (SIAM), domestic passenger wholesales were at 10,18,355 units in January to March 2023 as compared to 9,20,685 units in the same period a year ago.

At present, products from the company are priced at around 11 lakh to over 34 lakh. Gupta said models in the 15-20 lakh price bracket account for about 55 per cent of the company’s sales at present. The price points have also gone up due to adding of new features to the cars as well as new government regulations such as the BS6 phase II and the upcoming mandatory six airbags. In the March quarter, the company recorded wholesales of 10,119 units.


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