The Hindu Business Line : Volkswagen to launch two mini vans by year-end

Mumbai, Aug. 21 Volkswagen, which has been planning an entry into the Indian commercial vehicle market, has decided to launch two mini vans, primarily targeting the business class.

“We have completed all the ground work and will be launching two Volkswagen commercial vehicles by the end of this year,” Mr Kurt Rippholz, Head of Communication, India, Volkswagen told Business Line.

Diesel-run variants of Caravelle, the 6 to 9-seater people-mover and Crafter, the commercial van belonging to VW’s T5 series will be launched, most probably in November-December, following the International Commercial Vehicle Trade Show in Germany in September.

Caravelle is a highly specialised mini van on which travellers can sit around a table and conduct meetings. The vehicle is equipped with Internet connectivity, fax machine and TV to offer a “relaxed business environment.” The 3.5-tonne variant of Crafter, a 15-seater can be converted into a goods carrier.

Caravelle with its advanced facilities focuses on the corporate circle while Crafter targets small and medium enterprises for its multi-utility. “This is a niche market which has not yet opened up in India. In the medium term, we foresee strong growth in this segment,” said Mr Rippholz.

The vans will be shipped from Germany as completely built units. “Prices have not yet been fixed and we want to place them as value-for-money products,” he said. Caravelle vans are sold at a price range within £28,400 - £34,800 (Rs 23-28 lakh) while Crafter’s price starts at £15,900 (Rs 13 lakh) in the UK.

Volkswagen group, which has established its presence in the domestic passenger car market with its three brands including Skoda and Audi, has been preparing the ground for its entry into CV space. It exhibited a host of commercial vehicles at the Delhi Auto Expo in January.

The commercial vehicle arm of Volkswagen visited India during the last week of July to finalise its launch plans.

The commercial vehicle department of Volkswagen in India will operate from the newly-set up corporate office in Bandra-Kurla Complex in Mumbai and a senior manager heading the team will assume charge shortly.

The Volkswagen group, which sold 2.64 lakh commercial vehicles worldwide in the first half of the current year, is looking at emerging markets for growth. The company sells buses and large trucks, including the 40-tonne category in South America.

Volkswagen has majority stake in truck manufacturer Scania and minority stake in MAN AG, which has shown interest in starting independent business in India other than its existing JV with Force Motors to make trucks.

Volkswagen has no plans to start local production of commercial vehicles in the near future although it is setting up a 1.1 lakh-capacity plant in Chakan, Pune.

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