Volkswagen may focus on bigger cars for more profit

The largest car maker of Europe, Volkswagen group was once captured as stiff challenger to market leader called Maruti Suzuki. It may skip the essential hatchback segment across the different countries of world including India because it’s small on priority for the brand new vision of the carmaker. While the small scale vehicle market makes up for over half of the 3.4 million passenger car market. Volkswagen is stressing on market share with profit as priority more than large volumes.

 

Amongst the three scenarios explained by the carmaker, a proposal of two vehicles each for both Skoda as well as Volkswagen seems to be a major choice with the primary focus on compact SUV & sedan along with some hatchbacks having no role, at least in the upcoming five years, explained more than half dozen executives aware of the plan of the organization.

 

One of the several executives of VW said that, ‘The small vehicle makers is extremely crowded, rather than the firm can make much deeper inroads into the comparatively under impaled sedan & SUV market, where Volkswagen or Skoda can stake to their DNA & yet to make money.’ While another executive told that, the small car plan is not fully thrown out of the window, but its looks very low on priority. With SUV & sedan’s development & localization, if the carmaker’s group feels that there is any chance for a business case for hatchbacks, they will reconsider it around the year 2022.

 

To be sure that, this isn’t the first time when Volkswagen has put the small vehicle plan on hold, it has enlarged the project over 3 times in the country. Skoda was commissioned by the group of Volkswagen in order to develop a huge platform for cars in the emerging markets. The Volkswagen group had planned to release 6 vehicles, three of each for Volkswagen & Skoda, mainly a mid size sedan, a hatchback & a compact SUV. It would have a volume of potential around 3, 50,000 per year at its peak with an important export contribution.