AutoBiz: Volkswagen to Go Easy on Your Wallet

The German brand is aiming to bring down the cost of their vehicles along with the cost of the after-sales maintenance service

India is a price-sensitive market where most people bear the mentality of acquiring more at a lesser value. Therefore, most foreign brands find it hard to survive in India because their premium offerings are pricey. German brand Volkswagen has realised this significant factor and therefore, they have chalked up a modern strategy for the Indian consumers. 

The German brand is acting to cut down the cost of their upcoming vehicles along with the parts to strengthen the after-sales service of the vehicles. As per a report shared by Zigwheels, the firm is expected to diminish the price of its parts by 13 per cent, oils for petrol models by 32 per cent and services packages by 23 per cent. 

The action is not a surprising one because Volkswagen’s mid-size SUV Taigun is set to make its India debut during the upcoming festive season of Durga Puja and Diwali. Therefore, the sudden change is being acknowledged as a smart one because Volkswagen is trying to enhance the overall ownership experience before the Taigun hits the floor. However, Volkswagen will not reduce the parts and oil prices of the diesel-spec vehicles, which is a shock to everybody. 

In an exclusive interview with Autocar India, the brand head of Volkswagen Passenger Car India, Ashish Gupta said, “I think the challenge is making sure that the customers understand the value proposition of the car. It’s not only about the design and what the product is, but what does the buyer get when he/she buys a Volkswagen. The unique experience that we want to provide right from inquiring about the car to the service experience is what will differentiate us in the market. So, this is the biggest challenge – how do we position ourselves as providing a holistic customer experience rather than just the product. Because if the product is strong, I believe it will sell on its own, but making an environment around it, making an ecosystem around it, which enables customers to understand the value proposition, is the piece that we are trying to implement, get across into our network and communicate to our customers.”

On bringing the prices of the parts down; Gupta concluded by saying, “This (perception of the high cost of ownership) typically has been one of the issues that we have tried to address, not only with the Taigun or the new products coming into the market but with the existing products as well.”

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