Petrol Stop - Volkswagen drives in Polo at Rs 4.3L

Volkswagen drives in Polo at Rs 4.3L

Tuesday, 23 February 2010

24 Feb 2010;timesofindia.indiatimes.com:Pankaj Doval:NEW DELHI: The fiercely-competitive Indian small car market got its first German brand with Volkswagen, Europe's number one carmaker, driving in its Polo hatchback at a competitive price of Rs 4.34 lakh (ex-showroom Delhi), pitching it aggressively against models from Maruti and Hyundai, who dominate the segment. At present, VW is a marginal player in India, considering its absence from the big-volume compact car segment. The company said it plans to boost its presence in the market with launch of the volume-model Polo. "The Indian car market is growing very fast and we plan to have a sizeable presence here. The Polo will help us lead the charge and will account for the majority of volumes for Volkswagen in India," said Neeraj Garg, member of board and director of VW's India Passenger Cars Division. The company is eyeing sale of over one lakh units annually in India over the next three to four years, largely driven by the small car. "The Polo will further intensify competition in the small car market and VW's competitive stance may even lead to a price war in the segment," said Mahantesh Sabarad, auto analyst at Mumbai-based Centrum Broking. Polo, one of the most recognisable brands of VW globally, will start with 50% localisation and Garg said the effort was to increase it further. It carries 1200cc petrol and diesel engines, both of which are being imported. While the petrol version starts at Rs 4.34 lakh, the diesel starts at Rs 5.32 lakh (both ex-showroom Delhi). Polo will compete with models like the Swift and Ritz, i20 and Fiat's Punto, and VW seems to have made every effort to keep the pricing of the car close to them. "It is a good price to launch at...but more than the price, VW needs to establish its brand first," said Pradeep Saxena of TNS.