Six new variants. Three new colours. That’s more or less the extent of the updates announced by Volkswagen India at its Annual Brand Conference in Kochi, Kerala.
Brand Director Ashish Gupta unveiled, among other models, a Virtus and Taigun GT Plus with a 6-speed manual gearbox, along with a Taigun GT Plus model featuring a Direct Shift Gearbox (DSG).
It’s the first DSG to feature in the Taigun line, which gets a 6-speed torque converter instead of the popular dual-clutch transmission gearbox. At present the VW brand’s MQB A0-I platform-based vehicles include the Virtus and the Taigun, both of which feature a 1.0-litre TSI and a 1.5-litre TSI petrol, with the latter marking the entry into the performance line.
“Thirty-six percent of last year’s sales came from the performance line” says Gupta, confirming that the new variants of the Virtus and Taigun will be the sum total of offerings from the brand this year. He also confirmed that unlike Skoda India, Volkswagen India will not be going ahead with the India 2.5 plan, and will instead re-position itself as a maker of more premium offerings with the likes of the new Tiguan, Toureg, the 7-seater Touran and the T-Roc, on their way next year.
“We’ve more than doubled our price points, gotten into newer segments, new customer sets and are generally more in line with the global positioning of the brand,” he said.
Gupta’s rationale behind going in a more premium direction is that the market is now ready for it. “There’s a longer waiting period for sub-Rs 20 lakh cars than cars costing Rs 8 lakh.”
VW India’s EV plans
On the EV-front, it would appear, consumers will have to wait much longer. The recently launched Volkswagen iD4, which is based on the brand’s own born-electric, MEB platform, has been making waves in Europe.
But according to Gupta, the model isn’t headed to India before the end of 2024, or, more likely until the start of 2025. This is because, among other things, VW Global’s Research & Development (R&D) unit in Wolfsburg is yet to test the platform and the vehicle for what is deemed a very hot and humid country. Given Volkswagen’s adherence to top-notch safety levels, no EV will be launched in the country, unless it passes every test thrown by India’s challenging climate.
There’s also the question of the local assembly. The iD4 will only make sense when brought-in via the Completely Knocked Down (KCD) route, as it would allow the car to avail of the more accommodating custom duty bracket, and be priced on par with the Tiguan at Rs 41-45 lakh (ex-showroom). Following this, it’ll soon be joined by the recently launched iD2, which will come in at the same price point as the Taigun.
“Today the real action in the EV space lies in the sub-Rs 20 lakh space,” says Gupta, adding that the brand has no plan of offering a budget EV because the market is ready for a more premium offering like the iD2, and the 5 percent Goods and Services Tax (GST) slab allows brands to price EVs in India on par with European prices.
Gupta stated that importing limited numbers of Completely Built-Up (CBUs) will not be a part of the brand’s EV strategy as it doesn’t bring Return On Investment for dealers. VW India would also be looking at localizing at least 50 percent of the battery pack manufacturing process, and tying up with local suppliers to increase parts localisation.
Good news for enthusiasts
For now, VW India is focusing on the needs of the enthusiast, by introducing a variant of the popular Virtus and Taigun GT that gets a 6-speed manual mated to the 1.5-litre TSI engine, making 150PS of power.
The brand did this in a bid to make the performance line more accessible and the fact that several enthusiasts in the market prefer the enhanced driver engagement of a manual as an added bonus.
The brand also brought the DSG back into the folds of its MQB A0-I based offerings, which currently contend with a 6-speed torque converter instead of a dual-clutch option. Gupta did say that the brand is considering bringing the popular Polo GTI as a CBU from its South African market (which produces right-hand drive models exported to the UK), albeit in very limited numbers. When asked about the probability of such a niche performance model being available in India, Gupta remained non-committal.
Peaks and troughs
For FY2024, VW India does see the semiconductor shortage being less severe, with Gupta confirming that it set the brand back by over 18,000 orders last year.
“It’s much less severe now. As a sales organization, you need to have visibility for 12-15 weeks, to be able to give an indication to your dealers and customers regarding the waiting period for a model. The peaks and troughs have leveled out,” says Gupta, adding that the average waiting time for a VW car has come down to 2-3 weeks.
VW India also states that it will continue to differentiate itself as a performance- and safety-driven brand, one which will continue to see high demand despite increasing competition, thanks in part to a rapidly developing highway network that is having an effect on consumer preferences.
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