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Fundamentals of Management

Kartik SharmaHarshit Bassi

BBS-1 B

Company Profile:Volkswagen India

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Introduction

Volkswagen is a German automobilemanufacturer.

The original and biggest-selling marque of theVolkswagen Group, which also owns the Audi,Bentley, Bugatti, Lamborghini, SEAT, and Skodamarques.

Europes largest automotives company.

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Volkswagen India:

Volkswagen India Private Limited is its Indianarm.

It assembles, manufactures and distributesVolkswagen vehicles in India.

Entered the Indian market in 2007.

First launch was the sedan, Passat in 2007. Followed by the Jetta, Touareg, Beetle, Polo,

Phaeton and Vento.

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Product Line and Mix

Volkswagen India

Hatchbacks

Polo Beetle

Sedans

Vento Jetta Passat Phaeton

SUVs

Touareg

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Polo Beetle

Vento Jetta

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Passat Phaeton

Touareg

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Ownership and Structure

Publicly traded company- Issues ordinary shares andpreferred shares .

Complex Ownership Structure.

Shares Held By

50.76% Porsche Automobil Holding

2.37% Porsche Holding GmbH

20.26% State of Lower Saxony

17% Emirate of Qatar

9.61% Widely Held

http://en.wikipedia.org/wiki/Voting_sharehttp://en.wikipedia.org/wiki/Preferred_stockhttp://en.wikipedia.org/wiki/Lower_Saxonyhttp://en.wikipedia.org/wiki/Emiratehttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Emiratehttp://en.wikipedia.org/wiki/Lower_Saxonyhttp://en.wikipedia.org/wiki/Preferred_stockhttp://en.wikipedia.org/wiki/Voting_share

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Type: Subsidiary

Industry: Automotive

Founded: 2007

Headquarters: Pune, Maharashtra

Key people:

Mr. Joerg Mueller, President and MD

Mr. Neeraj Garg, Director(Passanger Cars)

Parent: Volkswagen Group Sales India

Website: www.volkswagen.co.in

Number of Products in the portfolio: 7

Production Output (Calendar Year 2010): 32,627 Units

Number of Plants: 2 (Chakan; Aurangabad)

Number of Dealerships: 73

Current Market Share: 2.8 %

Number of Employees(2010): 4537

Profile:

http://www.volkswagen.co.in/http://www.volkswagen.co.in/

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New Product Development Strategy

The company is planning a low-cost vehiclesomewhere on the lines slightly higher thanthe Tata Nano.

The company also plans to introduce many of its globally successful models to the IndianMarket in a carefully chalked out strategy overthe next two years.

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All-Electric Vehicles: Two-door E-Up! electric car concept was debuted at

the 63rd Frankfurt Motor Show in 2009.

Uses a 60 kilowatts (82 PS; 80 bhp ) all-integrateddrive electric motor.

Zero-Emissions-Vehicle(ZEV). To go on sale in 2015.

http://en.wikipedia.org/wiki/Volkswagen_up!http://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Frankfurt_Motor_Showhttp://en.wikipedia.org/wiki/Kilowatthttp://en.wikipedia.org/wiki/Metric_horsepowerhttp://en.wikipedia.org/wiki/Horsepowerhttp://en.wikipedia.org/wiki/Horsepowerhttp://en.wikipedia.org/wiki/Metric_horsepowerhttp://en.wikipedia.org/wiki/Kilowatthttp://en.wikipedia.org/wiki/Frankfurt_Motor_Showhttp://en.wikipedia.org/wiki/Electric_carhttp://en.wikipedia.org/wiki/Volkswagen_up!http://en.wikipedia.org/wiki/Volkswagen_up!http://en.wikipedia.org/wiki/Volkswagen_up!

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Hybrid-Electric Vehicles

Volkswagen and Sanyo have teamed up to develop abattery system for hybrid electric vehicles . Plans on to build compact hybrid electric vehicles and

hybrid versio ns of hatchbac ks Polo and Golf, withgasoline and diesel engines .

Also underway at Volkswagen's Braunschweig R&D facilities in North ern Ger many is a hybrid version of thenext-generation Touareg .

VW also announced plans to introduce diesel -electric

hybrid versions of its other popular models, beginningwith the new Jetta , followed by the hybrid version of the Passat in 2014.

http://en.wikipedia.org/wiki/Sanyohttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Braunschweighttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Touareghttp://en.wikipedia.org/wiki/Touareghttp://en.wikipedia.org/wiki/Diesel_fuelhttp://en.wikipedia.org/wiki/Volkswagen_Jettahttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Polohttp://en.wikipedia.org/wiki/Volkswagen_Jettahttp://en.wikipedia.org/wiki/Diesel_fuelhttp://en.wikipedia.org/wiki/Touareghttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Braunschweighttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Sanyo

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Upcoming Models:

Volkswagen Up!(Expected Launch: December 2011)

Volkswagen Tiguan(Expected Launch: June 2012)

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Volkswagen Golf (Expected Launch: July 2012)

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Vision The Mach 18 Strategy: Mach 18- The programme launched in 2008 by Volkswagen wherein the

aim is for the VW Group to top the automotive world in every waypossible by 2018.

in terms of most units produced and sold. in terms of efficiency of manufacture process. in terms of market cap and also in terms of profitability.

Objectives of the Mach 18 strategy are: To boost the work presence To improve the market share. To increase the sales volume from present 6.5 million to more than 10

million cars.

Global strategy depends very much on improving the situation in emergingmarkets like India.

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Specific Aims

To Expand the Dealership Network to 100+from the present 72.

To maintain a 15% Compounded AnnualGrowth Rate in India over the next five years.

To grab 20% of the Indian Market by 2018

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Performance and Sales

Modest sales figures in 2007-2008. Company picked up from 2009, selling 3000+

units. Landmark year: 2010. Sales grew to almost 32000.

Dealerships went from 40 to 70+.

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Sales Comparison: 2010 to 2009

0

5000

10000

15000

20000

25000

Polo Vento Jetta Passat Touareg Phaeton Beetle

2010

2009

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2011: Polo and Vento continue their exceptional run. Vento: The most visible symbol of VWs success in

India. The Vento overtook Honda Citys sales in March

2011.

0

1000

2000

3000

4000

5000

6000

January February March April May June

Volkswagen Vento

Honda City

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VWs Indian Success Story: Continued

Major presence in all 4 segments viz-Hatchbacks (Polo; Beetle), Sedans (Vento;Passat; Jetta; Phaeton), SUVs (Touareg)

VW today has managed to carve out a 2.8%share of the 87,500-crore Indian car market,which grew at 30% in the last fiscal year.

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Key Strategies

Volkswagen adopted a top-down introduction strategy for theIndian to arrive at a competitive pricing.

The first step was to create an image of a sophisticated, innovativeEuropean volume brand.

This was done with the Passat and the Touareg, both premiumluxury cars.

A 360 degree approach to deliver global quality at local prices. VWhas unabashedly played the price card.

VW plans to manufacture and localize volume in India.

A major aim is to create an unparalleled structure for service andafter-sales service.

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Targeting Limited edition variants, state-of-the-art add-on

features, extended warranty at nominal costs andfestive offers have been a constant feature in VWsportfolio.

Breeze Branding: Recently came up with special edition Breeze variants

of the Polo and Vento. Include a state-of-the-art bluetooth-enabled

touchscreen multimedia player cum navigation system,premium materials and cushioning, a pair of rear seatpillows that conflate style and comfort.

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Vento IPL Edition:

During the Indian Premier League 2011, Volkswagencame up with an IPL Edition of its Vento Was received very well in the market.

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Dealership Network

Volkswagen is spreading its network very wellin India.

The company already has 70+ dealerships inIndia across 63 cities.

Plans to take this number to 100+ by 2013.

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External Factors

RBI Interest Rate Hikes

Inflation

Hike the prices of Petrol and Diesel.

Price cut by Honda

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Thank You! :*