Page 53 - Forbes - India (January 2020)

auto

Becoming a

People’s Car, Again

German automaker Volkswagen has revamped its india strategy to
gain a bigger share of the country’s booming auto market

By Manu Balachandran

urpratap Boparai Wolfsburg-headquartered company “The real difference in their India
certainly knows the is yet to replicate its global success 2.0 strategy is that it essentially
importance of planning in India, the world’s fifth-largest combines all their efforts,” says
well. He often spends automobile market. In 2018, the Vinay Pipasarnia, global consulting
Ga few weeks every year Volkswagen Group sold nearly 11 director at Counterpoint Research
riding across India on his Triumph million vehicles globally; in India it and former executive director at
Thruston R and in the last few didn’t even cross 100,000. With a Ford Motors India. “Individually
weeks of December, the managing combined market share of 2 percent, all their companies have been very
director of Skoda Auto Volkswagen Volkswagen’s fortunes are in stark small, but when you put them 53
India (SAVI) rode from Mumbai to contrast to Hyundai Motors, which together, they have a wholesome
Wayanad in Kerala, a distance of began operations in India four presence in various categories.
more than 2,000 km over 10 days. years before Skoda’s entry and has The most important thing for them
Certainly, that could not have been emerged as the country’s second- is to keep costs down, and hence
done without a detailed plan in hand. largest carmaker, cornering a little the pivot towards newer models.
It is perhaps this attention to over 18 percent of the market. When you are chasing together,
detail the engineer-turned-business “It is no secret that we have there will be lesser duplication of
executive is banking on to resurrect struggled so far,” says Boparai, who efforts and more experience.”
the fortunes of the world’s largest was roped in from Fiat in 2018. “The
carmaker, the Volkswagen Group, market share is not in line with what Starting troubleS
in India. A veteran of the Tata we expected. As a group we want Since its launch in India, the Group
Group, Boparai, 50, is known for the it to grow to 5 percent by 2025.” was simply not able to woo mass
phenomenal success of SUV maker To do that, Boparai and the Group customers. Although Skoda Octavia,
Jeep, when as the head of FCA India have devised a new three-pronged Volkswagen Polo and Vento did
Automobiles (Fiat) he played a crucial strategy, code-named India 2.0: It manage to ignite consumer interest,
role in bettering localisation levels and will merge different units to create an they could never match more
ensuring seamless production of the umbrella organisation and increase popular models from Maruti Suzuki
Compass model. At SAVI, Boparai has dealer networks; it has developed or Hyundai, which boast cheaper
several challenges in the year ahead. a new platform, MQB A0-IN, on vehicles and better service networks.
The Volkswagen Group—makers which to launch four new vehicles, Skoda launched the popular Octavia
of Skoda, Volkswagen, Audi, starting 2021; Skoda, the Volkswagen in 2001 in India, followed by the
Lamborghini, and Porsche—has Group’s Czech subsidiary, has been successful hatchback Fabia and SUV
struggled in India, particularly handed the mandate to lead India Yeti. But the company didn’t localise
against Korean and Indian carmakers, operations, in line with a global productions and chose to import
in gaining a sizeable presence for strategy where one Group subsidiary Completely Knocked Down units. The
more than a decade. Having begun drives strategy and sales in a specific arrival of Volkswagen in 2007 allowed Madhu Kapparath
operations in 2001 through its region. “The idea was to reboot our the Group to manufacture the Polo,
subsidiary Skoda Auto India, the approach to India,” says Boparai. Vento and Rapid within the country.

january 31, 2020 • forbes india