The Volkswagen Group may bring its Seat brand to our shores to further consolidate its position in India. By launching Seat products in India, the VW Group could benefit from even greater economies of scale which is crucial in driving down costs and increasing market share.
However, German auto major says that it will be quite a task for them to make the Spanish brand to establish a unique identity in the Indian market. What is to be noted is that there is already an overlap between VW and Skoda products here. However, Volkswagen is hoping that Seat’s unique styling and the well known Mediterranean character will find favor with the young and 21 century’s car buyers.
Seat is ready to make its first appearance in China and India probably will be the next big market for the Spanish brand.
VW’s worldwide sales have gone up by a considerable12.1 percent this year but has shown a slower growth rate of a mere 2.3 percent. Making a debut at emerging markets should to be just what the doctor ordered
Seat’s model line-up of the Ibiza hatchback ( in the range of the VW Polo ), the Exeo saloon ( falls between the Jetta and the Passat) and the Alhambra MPV (that can take on the likes of Toyota Innova and the Tata Aria) sounds impressive .
Severed ties with Maruti have made a negative impact on VW’s immediate developments in the high-volume small car market, but VW hopes to undo the damage with the Up! hatchback that was recently revealed at the Frankfurt Motor Show. Skoda has already revealed the Citigo hatchback, which is very much based on the Up! and then Seat too has its own version called the Nuevo Mii.
All the above mentioned high volume models share the same platform, powerplants and various other components, and this could result in huge economies of scale.
VW Group is planning to invest a whoppingg $86.4 billion (Rs 4.3 lakh crore) in the next 5 years. From new manufacturing plants to vehicles to R&D centres, the Group will invest in all of its nine brands.
With plans like bringing Seat to India including many others, VW seems to be well on track on achieving its goal of becoming world’s biggest auto maker.