Professional Documents
Culture Documents
The Automobile industry in India is the seventh largest industry in the world with an
annual production of over 2.6 million units in 2009.
In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan,
South Korea and Thailand. By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's roads.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and
Mahindra and Mahindra, expanded their domestic and international operations.
India's robust economic growth led to the further expansion of its domestic
automobile market which attracted significant India-specific investment by
multinational automobile manufacturers.
In February 2009, monthly sales of passenger cars in India exceeded 100,000 units.
Following the independence, in 1947, the Government of India and the private sector
launched efforts to create an automotive component manufacturing industry to supply
to the automobile industry. However, the growth was relatively slow in the 1950s and
1960s due to nationalisation and the license raj which hampered the Indian private
sector.
After 1970, the automotive industry started to grow, but the growth was mainly driven
by tractors, commercial vehicles and scooters. Cars were still a major luxury.
Japanese manufacturers entered the Indian market ultimately leading to the
establishment of MarutiUdyog. A number of foreign firms initiated joint ventures with
Indian companies.
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Public Company
Headquarters:
Germany
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Industry:
Automotive
Products:
Cars, Trucks
Revenue:
Operating income:
Profit:
Employees:
369,928(2008)
Subsidiaries:
Audi
Bentley motors ltd.
Bugatti automobile
Lamborghini
Seat
Skoda auto
Scania
Volkswagen passenger car
Volkswagen commercials vehicles
INTRODUCTION TO VOLKSWAGEN
Type:
Founded:
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Founders:
Headquarters:
Area served:
Key people:
Martin Winterkorn
(Chairman of board of management)
Christian kingler:
Ferdinand piech:
Industry:
Automotive
Products:
Cars, Trucks
Website:
Volkswagen.com
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Its current tagline or slogan is Das Auto (in English The Car).
HISTORY OF VOLKSWAGEN
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Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933,
shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make
changes to Porsche's original 1931 design to make it more suited for the working man. Hans
Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features
in the 1938 "KdF-Wagen", later known as the VW Kferor Volkswagen Beetle. When
Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to
finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the
"People's Car" for Hitler's mother.
After some time, they planned to change some features regarding various aspects.
These changes included better fuel efficiency, reliability, ease-of-use, and economically
efficient repairs and parts. The intention was that ordinary Europeans would buy the car by
means of a savings scheme ("Save five Marks a week, if you want to drive your own car"),
which around 336,000 people eventually paid into. The VW car was just one of many
KdFprogrammes which included things such as tours and outings. The prefix
"Volks"("People's") was not just applied to cars, but also to other products in Europe; the
"Volksempfnger"
radio
receiver
for
instance.
On
28
May
1937,
the
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The building of the new factory started 26 May 1938 in the new town of KdF-Stadt,
now called Wolfsburg, which had been purposely built for the factory workers. This factory
only produced a handful of cars by the time war started in 1939. None were actually
delivered to any holder of the completed saving stamp books, though one Type 1 Cabriolet
was presented to Hitler on 20 April 1938 (his 49th birthday).
At the times of 1st world War, Volkswagen War meant production changed to military
vehicles, the Type 82 Kbelwagen("Bucket car") utility vehicle (VW's most common
wartime model), and the amphibious Schwimmwagen which were used to equip the German
forces.
By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was
still in disrepair. Due to roof and window damage, rain stopped production and steel to make
the cars had to be bartered for new vehicles.
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Audi :
99.55% ownership; the Audi marque is the sole active brand of the
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SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100%
ownership by the VW Group since 1990, and was the first foreign subsidiary in the
VW Group.
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Volkswagen
Commercial
Vehicles
(VWCV)
or
'Volkswagen
70.94% of voting
rights as at 27
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ACHIEVEMENTS OF VOLKSWAGEN
In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis,
placing 1st, 2nd, 4th and 9th overall.
Volkswagen enlists Dakar Champion JuttaKleinschmidt, the first female to win the Dakar in
2001, to help design and compete a Dakar Racer.
In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to
become the ADAC Volkswagen Polo Cup.
In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series with the
Volkswagen Titan series truck - it became back-to-back champions for the 2004 and 2005
series.
In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th
outright but took 1st in the 2WD and Diesel class.
In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in
the Diesel class.
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In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno
Saby, finishing in 3rd overall and 1st in the Diesel class!
In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg 2. Five
vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the
Diesel class.
In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race
models finished 1st and 2nd
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VOLKSWAGEN IN INDIA
Recently Volkswagen paved the way for sustainable market activities in India. With
the investment agreement signed at the end of 2006 the brand sets a new course that unites
two success stories Volkswagen and India.
For the first step the Volkswagen brand will bring locally produced vehicles to the
Indian market up from the third quarter of 2007. To accompany the growing supply of
Volkswagen Passenger Cars, the Group has established a separate Indian sales company in
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2007, initially for Volkswagen as well as for Audi. Volkswagen Group Sales India Private
Limited registered in Mumbai will distribute locally manufactured and imported vehicles in
India.
Thus, Volkswagen can bring one of it's upper-premium sedan as the first locally
produced vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth
of its bestseller. The Passat has become the very image of automotive progress, representing
what Made in Germany means. This long-term success is confirmed by numerous
accolades from experts, journalists and customers who have put the car through its paces in
recent months. This image is characterized by vehicle size, drive technologies, safety features
such as airbags, ABS and ESP in addition to quality details including galvanized bodies.
Imported vehicles such as the premium Sports Utility Vehicle Touareg will complement the
range.
Skoda entered the Indian market in 2001. Its plant in Aurangabad, which assembles a
total of eight models including the Audi A6 and Audi A4 as well as the Volkswagen Passat
and Volkswagen Jetta, has been instrumental in this achievement. For Indian customers, the
name of Skoda stands for high-quality, robust yet affordable cars in the compact, lower midsize and mid- size ranges. In terms of models, the Skoda product offering in India ranges
from the Fabia through the Octavia, the Laura to the Superb. Skoda lifted the veil off its
international bestseller SUV Yeti for the first time in India at the Auto Expo 2010.
Audi offers high-end models of interest to Indian customers. With the A8 and the Q7,
the A6, the A4 and notforgetting the R8, the TT and the recently introduced Q5, Audi offers
top-quality, technically brilliant cars with an exclusive flair in the relevant luxury segments.
Audis positioning as a leading manufacturer of such high-class vehicles, both assembled in
India and imported through Audi India, will be systematically pursued in future. At Auto
Expo 2010, Audi also unveiled the Audi Sport back Concept a five-door model offering a
glimpse into Audi's future design vocabulary.
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Recognizing the importance of an extensive dealer network towards scripting a longterm success story, the brands of the Volkswagen Group are setting up dealerships spanning
the entire country with Volkswagen, Skoda and Audi having in total around 120 dealerships
across the country today. They are not only laying the foundation for a substantial increase in
sales but also doing the groundwork for offering a first-class all-round service, taking
customer satisfaction to the highest level. Keeping this in mind they launched their first
Group Logistics Service facility recently that would help make their dealer network become
more efficient and smoothen the entire process of service. In the period between January
2009 and December 2009, the three brands of the Volkswagen Group have together sold
around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked by recession
in the auto industry.
Made in India. By mid of 2010 the hatchback version will be followed by a sedan,
also based on the new generation of the Polo but entirely different to the hatch. In recognition
of its efforts in India, Volkswagen India won the coveted Automotive Company of the Year
2010 award at the Inaugural Golden Steering Wheel Awards India presented by the leading
automotive magazine, Auto Bild India.
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Technical specifications
Vehicle Model
Engine Type
Displacement(liters/cc)
Max. Torque(NM at RPM)
Transmission
Bore/Stroke(mm)
Max. Power output(kw(PS) @ RPM
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Emission Category
Euro 4
Price
2518279
Jetta
Technical specifications
Vehicle Model
Engine Type
4-cylinder
engine
1.6/1595cc
1.9/1896cc
148/3800
250/1900
5 speed manual 5 speed manual /6 speed
Displacement(liters/cc)
Max. Torque(NM at RPM)
Transmission
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gearbox
Max. Power output(kw(PS) @ 75(102) at 5600
RPM
Price
1,335,851
Touareg
Technical specifications
Vehicle Model
Engine Type
Displacement(liters/cc)
Max. Torque(NM at RPM)
Bore/Stoke mm
Compression Ratio
17.0:1
Max. Power output(kw(PS) @ 176@4000-4400
RPM
Fuel Type
Diesel 51CZ
18.5:1
230@3750
Diesel 51CZ
Volkswagen India will launch its first small car, the Polo, in the domestic market in
the early part of 2010. The car will be priced and positioned in line with the A2 compact car
category, which includes models such as Maruti's Swift & Ritz, and be built on a new
platform. The Polo will be made at the company's new manufacturing facility at Chakan,
Pune, with locally sourced auto components being about 50 per cent.
The all-new platform for the Polo has been designed keeping Indian road conditions in mind.
The Polo will be benchmarked against the market leader in this segment, which is
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MarutiSuzuki's Swift. The Polo would be available in the petrol and the diesel engine
variant.
Company hope to sell around 30,000 units in 2010. Then, by 2014, and hope to cross the
100,000 mark, by which time the car market in India would have crossed two million units
Till date, VW India has invested Rs 3,800 crore (Rs 38 billion) in setting up its operations in
India. The facility at Chakan has an annual capacity of up to 110,000 cars on a single shift.
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Engine
Hyundai i20 is available in both 1.2L (petrol) and 1.4L (diesel) engine versions
producing max power of 77 Ps and 99 Ps respectively. The car comes in both manual and
automatic transmission models giving you the full choice among drive options. Talking about
the Volkswagen Polo on the other side, the engine available is 1.2L, both in petrol and diesel
versions producing a max power of 75 Ps. The transmission available till now is only manual,
which can divert the customer to its rivals as the customer has the options to choose better. So
this is a weak point in the series of Volkswagen Polo of non-availability of automatic
variation. Polo will also be available in a 1.6L petrol engine producing boosting power of 105
Ps to create thrill in driving.
Looks
Hyundai i20 is for people who stay distinct from others. The whole car is muscled and
the looks are heavily weighted. No reason for the owner not to boast on owing such a car. The
front looks are clearly lined on bonnet with teardrop shaped headlights giving the car a
stunning and eye catching looks. Rear portion is also designed boldly with decent spreading,
but could have been designed much better.
Volkswagen Polo does look good but the shape is not that much attractive that catches
the eyes at first sight. It looks simply beautiful and is designed as an evergreen car. The
headlights and front look is very simple and decent. But the rear portion of Polo is very sharp
and better designed than i20. Volkswagen Polo is an international car which has already been
claimed among the perfect cars
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Features
Hyundai i20 comes loaded with features that are really fun to have. Glove box
cooling, multi info display, keyless entry with folded keys, two tone beige interior, all power
windows, 2 din music player with aux and USB support, electrically adjustable and foldable
outside mirrors, steering mounted music controls, battery saver, alloy wheels, height
adjustable front seats, defogger and a few more that are really worth to have. These all
features give i20 a very distinct image amog other cars in its segment.
Hyundai Interior
Volkswagen Interior
Volkswagen is also a no-less-feature car but still lacks few things when compared to
the i20, but contains few different features that are not present in i20. Few of the common
features include music player with 4 speakers, all power widows (in high-end models),
central locking and height adjustable seats. The other extra feature are window opening and
closing through remote, fuel lid push opening and central locking and power door locks. The
safety features also vary in number of airbags; i20 include airbags front, side and rear airbags
as well whereas Polo just contains two airbags for driver and front passenger.
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Feature list of Hyundai i20 is bigger than that of Volkswagen Polo, but the quality of
material used in Polo is far superior to any other car of its segment.
Pricing
Hyundai i20 Petrol Variants Price
1. Hyundai i20 1.4 Asta (AT) Rs.7,44,167/2. Hyundai i20 1.4 Asta AT (O) with Sunroof Rs.7,86,063 /3. Hyundai i20 Asta Rs.5,59,900 /4. Hyundai i20 Asta (o) RS.5,81,900 /5. Hyundai i20 ERA PETROL -RS.4,51,816 /6. Hyundai i20 MAGNA -RS.4,79,900 /7. Hyundai i20 Sportz Petrol -RS.5,31,817 /Hyundai i20 Diesel Variants Price
1. Hyundai i20 MAGNA 1.4 CRDI Rs.6,32,046 /2. Hyundai i20 ASTA 1.4 CRDI Rs.6,69,843 /3. Hyundai i20 ASTA(0)1.4CRDI Rs.7,34,540 /BURHANI COLLEGE OF COMMERCE & ARTS
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For many, the Vento is nothing more than a Polo with a boot, but VW have worked their
way in to ensure it gets a longer wheelbase and more interior room. In fact, room here is a
tad better than the Verna, both for the front and rear seat occupants. On the outside, the
Verna Transform is not something of sheer beauty and is a bit too radical for most people's
tastes. The Vento, on the other hand has a nice balanced look, even though we'd have
liked to see a more interesting tail lamp design.
Going back to the inside, it's the Vento who has a more interesting interior, while the
Verna can be termed 'par for the course'. The overall feel of the materials of the Vento
give you the impression of being of a much higher grade, while the Verna does have a lot
of colours to provide relief. Beige is highly used for both, though it's a tad more in the
Vento than the Verna.
The engines on both the cars are quite torquey. While the 1.5-litre diesel on the Verna has
more power and is more refined, the one on the Vento is a tad bit torquier. Both will get to
100 kph in under 12 seconds, but it's the Vento that is a shade quicker. The 110
horsepower Verna simply loses out to the higher displacement, 104 bhp Vento on account
of torque as well as gearing. The Vento has slightly shorter gearing which helps it get
there quicker. Efficiency-wise, it is the Vento that scores marginally over the Verna in the
combined cycle. But the Verna fights back by offering an automatic gearbox option, which
the Vento currently doesn't offer.
Dynamically too, it is the Vento that feels more sure-footed and more predictable. It turns
into corners better and rides quite well too. The Verna feels more comfortable on arrowshot straight roads and a bit too nervous and understeery around corners. There's also
more pitch and body roll in the car due to its soft suspension while ride quality is a bit
more pliant here.
Even though the Verna's price tag of Rs 7.84 to 9.19 lakh (ex-showroom, Mumbai) cannot
hide the fact that the Vento (Rs 8.19-9.46 lakh) is a more superior car in terms of engine
performance, dynamics, interiors and overall competence. The Verna also feels a half
generation older when compared to its German competition and doesn't do anything
spectacularly. In the end, the Vento overwhelmingly leaves the Verna behind.
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The 5-door Cross Up is based on the smaller 3-door Up but certainly looks bigger and
ofcourse longer. At this stage we only have the concept stage pictures and going by what we
see here, the Cross Up certainly looks quite good. It hardly has any typical VW lines that we
see today on cars like the Polo or the Jetta. On the other hand, it looks sporty, compact and
little aggressive. The true production model ofcourse will be toned down and for markets like
India, we can safely expect wheel caps in place of alloys, no roof rails, or even the black
cladding on the wheel arches. The rear of the 5-door Up is very clean and looks nice. It too
seems to have a glass hatch just like the Honda Brio.
The interiors of the Cross Up are said to be functional and sparse. What you see here,
the color combination, might not make it to India. What will remain same is the design of the
fascia and the console. Parts like the speedometer pods, knobs for the climate control, the
hand brake etc seem to have been taken from the Polo to keep costs low. The Up is expected
to be roomy for 4 adults with just about space in the boot for a weekend trip. What will
remain high is the overall comfort and the ergonomics for the driver.
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The Cross Up or the 5-door Up will go on sale in the international market by mid or
end of 2012 and this is also when we expect the car to come to India. No engine options are
clear at this time though we expect the Up to come with a 1.0-litre petrol engine to start with.
This will be mated to a 5-speed manual gearbox with ARAI certified fuel economy of around
20kmpl. The Up will take on the likes of the MarutiWagonR and Hyundai i10 and hence will
have a starting price of around Rs 3.5 lakh. More details will be clear at the Jan 2012 Auto
Expo.
MARKETING OF VOLKSWAGEN
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ISSUES
Caters mainly to luxury segment.
Higher price range except Skoda Fabia.
Lack of brand awareness among Indian consumers.
Lack of aggressive marketing in earlier phases.
Lesser sales than BMW, Mercedez, etc (SIAM).
Lack of consumer knowledge what Volkswagen stands for.
Perceived value v/s Perceived price value line.
4 Ps OF MARKETING
Product
15 different models under 3 brands.
Plant at Chakan, near Pune.
More assembly plans in India competitive advantage.
Awards last year.
Price
Targeted mainly for the luxury segment in the Indian market.
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Place
Significant presence number of dealerships and outlets across major cities.
Promotion
Launched Integrated Marketing campaign in November, 2009.
Collaboration with DDB Mudra.
Evoke consumer awareness of VW as a brand.
Innovative promotional campaigns OOH, print ads,TVCs.
Print media Communicating benefits.
Television Commercials Brand building.
PLANS
Building brand image through innovative promotional campaigns.
Earlier example think small for Beetle in 50s.
Core focus on luxury segments.
Low cost VW Polo for targeting masses.
Achieve significant awareness of VW as a brand before launch of Polo.
Showcase German engineering coupled with Made in India promise.
AD CAMPAIGNS
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New Technology
Bargaining power of
buyers:
There will be an indirect relation between the bargaining power of buyers and various
product segments. More options to choose from the segment Volkswagen operates in.
Honda, Toyota (Accord, Civic, Corolla) have already capturing bulk of the market due to
its advanced petrol engines. Skoda has been successful mainly because of its diesel
offerings (Octavia, Laura). The D segment Market has been growing consistently.
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Substitutes
Volkswagen does not have substitutes in India currently for its diesel offerings except for
the recently launched GM Optra and Hyundai Sonata. But Volkswagen easily scores over
these products due to the brand recognition and loyalty it carries in the country. VW offers
the widest range of diesel cars in the D segment. Niche products like Lamborghini &
Bentley do not have competitors in the Indian market.
Competitors
Honda, Toyota, GM, Hyundai are its direct competitors
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Manufacturing plants of Skoda, VW and the new proposed Audi plant would be designed in
such a way that it can produce cars of any of the group companies. The VW group owns the
Skoda and Audi brands. The current models of Skoda Auto including the Fabia, Laura,
Octavia, Superb and future launches such as the Roomster (MPV) and Yeti (SUV) can be
produced in VWs plant in Pune or at Audis facility.
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CORPORATE STRATEGY
Growth strategy
Growth strategy is the means through which an organization plans to achieve its
objective to grow in turnover and volume. There are four broad growth
strategies which include; product development, diversification, market
development and market penetration .It is a style that seeks stock with future
investment rates of return being great than the stocks.
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Since Winterkorn took over for Bernd Pischetsrieder in 2007, VW Group consistently has
increased unit sales and operating profits despite a prolonged and severe downturn in its
home region that has new-car sales headed for a sixth consecutive decline.
He has done so by investing heavily outside of Europe, a move that has made China the
largest global market for VW brand and Audi and has turned Asia Pacific into the VW
Group's No. 1 region. By comparison, struggling rival PSA/Peugeot-Citroen still relies on
Europe for the majority of its sales.
Through May, VW Group increased global sales by 6 percent to 3.87 million. This follows a
12 percent sales gain in 2012 compared with 2011. That rise pushed total VW Group unit
sales to a record 9.28 million. When Winterkorn announced his 10-million-sales goal for
2018 in 2007, many said the target was too ambitious, especially for an automaker that was
selling about 6 million units a year.
During the first five years of the plan, VW Group increased unit sales by nearly 50 percent
compared with 2007. That leaves the automaker six years to boost its global volume by 10
percent to 10 million vehicles compared with 2012.
VW Group is this far ahead of schedule because its global growth has offset the slowdown it
has suffered in western Europe, where the sovereign debt crisis has led to austerity measures
that have kept customers from big purchases such as cars. The result is that May sales in
Europe fell to a level not seen since 1993.
7 new plants
"We will be building a minimum of 10 additional plants in the coming years, of which seven
will be in China alone," Winterkorn told shareholders in April. The expansion plan would
increase the number of VW Group plants in China to 19.
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Last year, VW sold 2.81 million vehicles in China, of which about 2.62 million were locally
built. The target for this year is to reach 3 million China sales, but experts warn that target
might be difficult to reach. "There's still enormous potential in China, but the market has
slowed from double-digit growth to single digits, and that will remain so in the future," said
Stefan Bratzel, director of the Center of Automotive Management at the University of
Applied Sciences in Bergisch Gladbach, Germany. "The risk of over-dependence and
overcapacity naturally rises with such a plan. It's up to VW to manage that."
Turnaround Strategy
Turnaround strategy is an analytical approach to solve the root cause failure of
a loss-making company to decide the most crucial reasons behind its failure.
Here, a long-term strategic plan and restructuring plans are designed and
implemented to solve the issues of a sick company.
concentrate on
segment,
no
horizon
Czech
car
has adopted a
year
plan in India,
has
decided
volume growth
focus on the
segment
mass market of
maker Skoda
major seventurnaround
under which it
not to look at
till 2016 and
premium car
instead of the
small cars. The
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The signals of the capital markets and stakeholders are clear: social responsibility and
sustainability as keystones of a long-term corporate strategy contribute to the differentiation
of companies in product and capital markets. A total of 40 projects and initiatives
demonstrate how Volkswagen brings together wealth creation and value orientation for a
win-win situation. For us, responsibility and income are two sides of the same coin, said
CEO of Volkswagen, Dr Bernd Pischetsrieder in his foreword. Volkswagen orients itself to its
own standards as well as international conventions and encourages the worldwide
implementation of human rights and better environmental protection, e.g. by taking part in
the Global Compact.
On the occasion of the UN Earth Summit for Sustainable Development in
Johannesburg in 2002 Volkswagen acceded to the Global Compact and published a brochure
on how the Group implements the 10 principles on environmental protection and health and
safety at work, against corruption and for human rights. For example, participation in the
International Labour Organisation SafeWork programme will help to improve safety at
work in the take-off countries of Brazil, Mexico and South Africa. Volkswagen also involves
its suppliers in this, as it does in the Sustainability in the Supplier Chain project. Progress
can also be seen in the fight against Aids. Support for preventive measures and medical care
means that the hospital stays of aids patients in Brazil have been reduced by 95 per cent
within 10 years.
To realise the guiding principle of sustainable mobility, Volkswagen cooperates with
governments, environmental associations, unions and academic and research institutions as
well as with other car and oil corporations. Just recently, Volkswagen was a co-founder of the
Alliance for Synthetic Fuels in Europe in Brussels. In a detailed chapter of the brochure
Volkswagen actively deals with the effects of globalisation. Many examples clearly show that
globalisation primarily offers development opportunities of mutual benefit. By strengthening
the management functions for the integration of CSR and sustainability in the business
processes, Volkswagen will continue to advance its activities for sustainable and responsible
company development.
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SWOT ANALYSIS
Strengths
1) VW has boosted quality more than any other carmaker in the past five years, cutting
defects by 60%.
2) Their "family culture", no leading brand.
3) The VW group has the flagship of some of the biggest and most trustworthy brands in the
automobile industry.
4) Strong Procurement department with Sustainability in Supplier Relationships.
5) Strong CSR activities bringing together wealth creation and value orientation.
Weaknesses
1) VW still trails Toyota, Mercedes, Nissan, and Honda in overall quality.
2) VW's cost of capital is relatively higher than Daimler's.
3) VW bungled its communications with investors.
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4) It was late in inculcating the policies of Lean and JIT approach that Toyota was using for
many years.
5) Bad publicity due to being sued by GM.
Opportunities
1) Growth potential in the American and Asian markets.
2) Due to its very good results on the stock exchange, VW may expect to attract numerous
new investors
3) Potential decrease in Cost with their Production Strategy.
Threats
1) A softening in auto sales in Europe and South America.
2) Risk of self-cannibalization between VW's brands, like top of the line VW's models and
bottom of the line Audi's.
3) Risk of brand dilution owing to confusion between the VW Passat and the Audi A4.
4) Ever increasing fuel costs.
Largest investment by German company to date in Indian growth market maximum annual
production capacity of 110,000 vehicles
The Governor of Maharashtra State in Western India, Shri. S. C. Jamir, and Prof. Dr.
JochemHeizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft
with responsibility for Group Production, officially opened the new Volkswagen Groups
plant in India on Tuesday in the presence of some 500 international guests. For Volkswagen,
the new production facility in Pune is a major stepping stone towards achieving its ambitious
growth targets on the Indian subcontinent.
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The Pune plant will begin building the Skoda Fabia compact car in May 2009.
Production of a hatchback version of the Volkswagen Polo specially developed for the Indian
market will be added from 2010. With a total financial commitment in India amounting to
580 million euros, the Pune plant represents the largest investment to date by a German
company in the country. The facility has a maximum annual production capacity of 110,000
vehicles destined for delivery to the Indian market.
With the start of production at our new plant in Maharashtra State, the Volkswagen
Group has conclusively arrived on Indias emerging market. Thanks to the local production of
Volkswagen and Skoda models in Pune, we will benefit even more from enormous growth on
the Indian automobile market in future, Heizmann said at the opening ceremony.
Despite the impact of the financial and economic crisis the desire for individual
mobility in India remains high. Experts predict that the Indian automobile market will grow
from the present 1.2 million vehicles to over 2 million vehicles by 2014. The Volkswagen
Group has already been building Skoda, Volkswagen and Audi models at its plant in
Aurangabad since 2001. In addition to expanding production capacity, the Group is also
investing in an efficient Indian supplier industry and in expanding its dealer network across
the country.
The Pune plant is one of the most modern in the Volkswagen Group. It has a high
level of vertical integration and a large share of local suppliers. The facility is the only
production plant operated by a German automaker in India that covers the entire production
process from press shop through body shop and paint shop to final assembly.
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Volkswagen plans to employ some 2,500 people at the Pune plant by the end of 2010.
The investment agreement to build the new plant was signed in November 2006 just over
two years before todays inauguration ceremony.
In 2008, the Volkswagen Group produced 6.347 million vehicles worldwide, some
66.2 percent (4.201 million) of which were built outside Germany. The Pune plant is the 61st
in the worldwide production network of the nine-brand Group.
To mark the opening of the new plant, Jrg Mller presented an ambulance to the Red
Cross hospital in Pune and announced that Volkswagen India would support a local primary
school.
A clear, long-term orientation is essential for making decisions on short- and mediumterm measures. In view of this, Volkswagen has geared its operating policies towards
sustainable market success and income generation as part of the Group Strategy 2015.
Transparent and uniform processes throughout the Group are designed to bring about
shorter development, vehicle order and throughput times, to increase the efficiency of
capacity utilization in the plants and to boost the effectiveness of the distribution network.
In future, the Volkswagen Group will focus exclusively on its core areas of competence.
In all other areas, it will work together with external providers on the basis of agreements
governed by mutual trust, contracts or company law. The financial targets of the Group
Strategy 2015 for the Automotive Division include an ROI of at least 9% and an operating
return on sales before tax of 6.9%. Further targets are:
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RESEARCH METHODOLOGY
Methodology can properly refer to the theoretical analysis of the methods appropriate to a
field of study or to the body of methods and principles particular to a branch of
knowledge. In this sense, one may speak of objections to the methodology of a geographic
survey (that is, objections dealing with the appropriateness of the methods used) or of the
methodology of modern cognitive psychology (that is, the principles and practices that
underlie research in the field)
Research Design:
A two stage Research was conducted:
1. Secondary Research:
Data was collected from websites and catalogues to understand the product of the
different players
2. Primary Research:
A Primary Research was conducted:
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The questionnaire was prepared for the companies and following areas covered:
Sampling Plan: Elements: The target population of the study included the general
population of every age who prefer to buy car
SURVEY
Q.1. Are you aware about the brand Volkswagen?
Tabulation
coding
a
b
option
yes
no
frequency
45
5
Percentage %
90 %
10%
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Column1
no; 10%
yes; 90%
Interpretation:
Out of 50 respondents, 45 people say yes that they are aware of Volkswagen
brand. Reason for yes due to advertisement, they personally use the car of
Volkswagen. And 5 people say no that they are not aware of Volkswagen
brand they dont use the car. Not take interest to in knowing the brand.
option
maruti
toyota
hyundai
Volkswagen
other
frequency
15
8
7
5
15
Percentage %
30%
16%
14%
10%
30%
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other; 30%
maruti; 30%
volkswagen ; 10%
toyota; 16%
hyundai; 14%
Interpretation:
Out of 50 respondents, 15 people use car of Maruti. 8 people prefer car of
Toyota .7 people prefer to buy car of Hyundai. 5 people prefer to have car of
Volkswagen .15 people prefer other company car .which include Tata motor,
Mahindra, fiat .some are brand loyal and some prefer quality n feature
option
petrol
diesel
hybrid
frequency
25
23
7
Percentage %
50%
46%
4%
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hybrid; 4%
petrol; 50%
diesel; 46%
Interpretation:
Out of 50 respondents, 25 people say they prefer to buy petrol car. 23 people
say to buy diesel car because diesel is chipper then petrol .an 7 people say to
buy hybrid car because it provide benefit like .The electric motor is powered
by batteries that recharge automatically while you drive.
option
Full payment
EMI/loan
frequency
20
30
Percentage %
40%
60%
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EMI/Loan; 60%
Interpretation:
Out of 50 respondents 20 people say that they buy car on car basis .on full
payment. 30 people say that they prefer to buy on loan basis or EMI .because
they are from middle class a lower middle class
option
Brand
Price
Quality
mileage
frequency
10
23
10
7
Percentage %
20%
46%
20%
14%
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mileage; 14%
brand; 20%
quality; 20%
price; 46%
Interpretation:
Out of 50 respondents, 10 people say that they consider brand factor because
of brand loyalties an goodwill of company. 23 people say that price factor is
import to purchase a car because it should suit the individual pocket. 10
people say that the prefer quality and feature to buy a car. 7 people say
mileage or good average of car should consider
option
festival
Discount offer
New car launch
EMI is less
frequency
13
17
8
12
Percentage %
26%
34%
16%
24%
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festival; 26%
Interpretation:
Out of 50 respondents .13 people prefer to buy a car at the time of festival (eid
& diwali ) due to good Murat .17 people say to buy car when company provide
discount or offer . 8 people say when new car launch or when company bring
new car in market .12 people prefer to buy car when EMI & loan rate is less.
option
advertisement
Peer group
Fellow travelers
on road
frequency
23
12
15
Percentage %
46%
24%
30%
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Column1
Interpretation:
Out of 50 respondents. 23 people say they know about Volkswagen due to
advertisement and promotion. 12 people know about Volkswagen from the
peer group. 15 people know about Volkswagen by fellow travelers on road
Launch some low budget car around 4 lakh which can suit individual
Pocket it will make easy to buy for middle class people an lower class
People
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Volkswagen should work on their mileage part .more fuel efficient cars
with good average and with more good feature affordable price
Volkswagen should open more showroom of car in India and more car
dealer in India and service station also which make customer convenience
CONCLUSION
Volkswagen Group have a broad proliferation of models across its mass market brands of
Skoda, Seat, Volkswagen and Audi, but relatively few niche products and Volkswagen has
achieve International Awards And Accolades Worldwide. volkswahen mean people car
.Volkswagen also covering Indian market by launching new car will great feature. and polo
is the success car model in India.
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Product like Jetta ,Passat and Vento are running model Volkswagen has many competitor but
Volkswagen is doing good in covering Indian market
The marketing of Volkswagen also has good (place, price, promotion &product) and good ad
campaigns .media promotion. And adopting different strategy to cover world an Indian
market
Focus lies on becoming an economic an environmental leader in global automotive
industry .and most eco-friendly automaker in the world. Volkswagen has opened a new car
making plan in Pune .with production capacity of 110000 car annually. Volkswagen is good
in adopting corporate social responsibility
BIBLIOGRAPHY &WEBLIOGRAPHY
WWW.VOLKSWAGEN.COM
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WWW.CARWALE.COM
QUESTIONNAIRE
NAME:
AGE:
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Maruti
Toyota
Hyundai
Volkswagen
Any other _________________
b) Diesel
c) Hybrid
Brand
Price
Quality/Features
Mileage
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