Wednesday, December 26, 2012

VW Races With GM for 2013 China Crown - Businessweek

How we all tend to chase numbers, including the respectable media :)! 
As a car enthusiast, or a common-man following auto industry, my concerns lies elsewhere : strategy, product, safety, pollution, et al !
Should we all not focus on quality, rather than 'quantity' ?!

Sometime back, at the peak of the recall crisis (or immediately thereafter?!), Toyota said they would not chase sales-numbers, but profitability and other related numbers! Perhaps, yes... first safety, of course !

So... back to numbers!!
  • VW brands will be helped by Chinese recovery, though the much-preferred Audi may see a drop, thanks to the situation arising out of corruption in establishments. 'Aam Admi' waking up there too, to the malaise of corruption in political admin !! 
  • Chinese auto market may grow in double digits, 10%-ish !
  • VW, riding on the basket of brands, will most likely hit 2.7 million cars, compared to 2.65 million cars by GM ( in China)
Unfortunately, VW is yet to extend that kind of focus on India. The premium brands (VW, Audi, etc) is doing reasonably well, the popular Skoda, thanks to the perception 'value for money' at the entry level of luxury (!!) is not getting due attention. Skoda having displayed the much cliched 'early-mover-advantage', VW seem to be clueless how to handle the brand in India. In the process, the Skoda cusotmer is suffering. Not getting the VW advantage at all. 

Big opportunity for Skoda, along with VW ( Polo, Vento and pls introduce more models) to strengthen position. Roads are a big focus in 12th plan. 

VW Races With GM for 2013 China Crown - Businessweek

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