Volkswagen prepares 10-year blueprint for India

Thierry Lespiaucq has been in India for less than six months but has already figured out that this is a market with promising growth prospects.

The Managing Director of Volkswagen Group Sales India, who has had stints with PSA Peugeot Citroen, General Motors, Toyota and Renault-Nissan, believes that it is important to lay the base for the next decade.

“The Indian market may not be very big today at 2.4 million units but has enormous potential. We, therefore, need to prepare ourselves as the economy grows,” Lespiaucq told a select team of newspersons here on Thursday.

This is precisely why VW believes a 10-year timeframe for India makes sense especially when it needs to evolve an elaborate revival plan. This will also involve putting in place a carefully crafted product strategy keeping in mind that this is essentially a small car market.

Despite this overwhelming preference by customers, VW is categorical about steering clear of the sub-Rs 4 lakh compact space occupied by models like the Hyundai i10 and Wagon R. On the contrary, it will stay focused on the Polo premium hatchback and Vento sedan categories while going upwards to segments where its strengths will come into play. VW also realises that it cannot ignore the sub-four metre space and will need to think of appropriate products here.

Prior to taking charge here, Lespiaucq was part of the company’s operations in Mexico. The India connect was established with models like the Vento produced in the Pune facility and shipped out to Mexico. The Polo, which will be launched later this year, also has a made-in-India DNA.

There is, however, only so much India can despatch to Mexico as this is not a viable option in the absence of a free trade agreement. “No country can go for FTAs overnight. The (Narendra) Modi administration is, however, going all out to attract investors and encourage manufacturing,” Lespiaucq says.

An avid biker, the VW chief has bought himself a Continental GT and zips around from time to time in the Mumbai suburb of Bandra. He is still getting the hang of traffic here and hopes to ride all the way to Goa in good time. Back home, he has an enviable bike collection which he is passionate about.

The top priority, though, is increasing footfalls at VW showrooms across the country. Lespiaucq knows that customers here seek a host of features in cars and it is important to listen to them carefully.

Yet, there is no way safety will be compromised especially in a country which is the world’s highest in road deaths.

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