One of the most interesting automotive group in the world. Volkswagen is the most successful Multi-Brand group in the automotive industry.
The Group currently owns twelve European brands: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand caters to specific needs of different segments and countries by virtue of its unique characteristics and operate as independent entities. The group’s product range include small budget cars to luxury class vehicles. In the commercial vehicle space, the product offering covers pick-ups, city to luxury buses and heavy trucks.
With the luxury of vast product portfolio, VW group has been able to invade into all segments and provide their target customers with a wide variety of options.
They use same punch line "Das Auto" meaning "The Auto" globally and it is written in German only in every country.
Austrian born Mr. Ferdinand Karl Piëch, Chairman of many supervisory board who is also known for many thrilling stories in Germany and Austria, is the one of the main leader behind Audi success story & built a brand equivalent to BMW and Mercedes. He personally devoted his time & effort in the development of new engine technology despite being CEO of Audi. He is a role model for today’s leadership on how to make the brand successful and lead by example. He was also criticized for his passion for engineering and investing heavily in building brands like Lamborghini and Bugatti.
In Volkswagen group all the senior management team use Audi cars only but Mr Piëch has cars of various brands which he drives personally & feel their performance. His stated dream is to make Volkswagen group “number one” by 2018.
Porsche brand is giving highest return on sales in global Auto Industry, whereas Volkswagen brand is the most saleable vehicle in its group. Audi is the most profit making brand in Volkswagen group.
In Commercial Vehicles segment Volkswagen is the market leader in Brazil. After merger with MAN, new products are in pipeline, new products are coming with MAN key expertise.
Scania is the most profit making company globally with around 930 million euro in 2012. Also in terms of sales revenue, Scania is the top performer of the group.
Most popular Products of Volkswagen Groups Globally:
Its group focus is on emerging market. China is the biggest market for it. In China it is having two different Joint Venture. Audi is the market leader in Premium segment.
Volkswagen Group has started its journey in India in 2001 with introduction of its Skoda brand. Though it is considered as a common man car in Europe, it has been launched in Premium segment and it is considered as premium brand in India. Thereafter Volkswagen, Audi, Porsche and Lamborghini launched in India. To make it better synergy among all brands, Head Quarter of all brand is in Mumbai.
In India Audi became successful in its segment but Volkswagen and Skoda could not break the ice. Still these two brands are struggling.
Volkswagen ad was very creative and unique which help to establish its brand awareness in India.
Their product portfolio do not cover 3 to 5 lakhs range which is one of the major constraint for growth of its volumes in India & they need to make more customized products as per local taste. For instance, you get a smaller spare wheel along with a new car just because it is common practice in Germany which is not appreciated by most of the Indian customer. Volkswagen is known for its customized products and its adaptability of local market dynamic
Volkswagen Pros and Cons
Skoda which is a common man’s car in central Europe is positioned in premium segment in India. Started from 5 lakhs onwards again missing from the sub 5 lakhs segment.
When Yeti was launched, the SUV/MUV segment was growing rapidly but Yeti could not take advantage due to its wrong price point, looks and after sales expenses.
Audi is achieving a strong stature in India after snatching leadership in luxury segment from BMW. The expansion of their network in India in recent future will form a solid base that shape their performance in world’s second biggest automotive market.
Sports premium car, known for its torque and advance technology. In India it has launched 6 models in different range.
What lies ahead
To compete more effectively in Indian Car market, the VW Group has to redefine their strategy. The entire product range has to undergo proper customization. Considerable re-work on the product positioning is imminent for long term success. Introducing products into 3 to 5 lakh price segment will give them a broad prospect to profit from the small car segment, which is the biggest passenger vehicle in India.
In commercial segment, time is running out for MAN to fix the product issues of CLA range. The introduction of MAN TGX range will serve as an entry point into Premium Truck Segment which can help them to improve their brand image and will tip-off directly against Mercedes Actros, Scania and Volvo.
All Data Source – ACG Databank