INTRODUCTION TO PROJECT The project title is “Volkswagen’s most awaited car POLO, reasons for placing the car in B+ segment and a detailed analysis cum benefits of various research works undertaken for POLO. This project helps us understand the present automobile industry, its trends and throws a considerable amount of light on how a company like, VOLKSWAGEN, which is so rich in its automotive experience, had to and is still doing good amount of ground work to understand the dynamics of the Indian market. The main insight which the project gives is that the company is leaving no stone unturned to understand the market, so as to continue its constant endeavor towards success. Making of this project report has not only helped me understand the industry and product better but also to analyze the findings of the market research in an improved manner. OBJECTIVES 1. To analyze the growth pattern of passenger car segment with primary focus on B-segment. 2. To find out how the market research activities have helped VOLKSWAGEN to come up with products meant for Indian market. 3. To find out the reason as to why POLO was specifically launched in B-segment

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Page 1: Market Adaptation of Volkswagen Polo


The project title is “Volkswagen’s most awaited car POLO, reasons for placing the car in B+ segment and a detailed analysis cum benefits of various research works undertaken for POLO.

This project helps us understand the present automobile industry, its trends and throws a considerable amount of light on how a company like, VOLKSWAGEN, which is so rich in its automotive experience, had to and is still doing good amount of ground work to understand the dynamics of the Indian market.

The main insight which the project gives is that the company is leaving no stone unturned to understand the market, so as to continue its constant endeavor towards success.

Making of this project report has not only helped me understand the industry and product better but also to analyze the findings of the market research in an improved manner.


1. To analyze the growth pattern of passenger car segment with primary focus on B-segment.

2. To find out how the market research activities have helped VOLKSWAGEN to come up with products meant for Indian market.

3. To find out the reason as to why POLO was specifically launched in B-segment

Page 2: Market Adaptation of Volkswagen Polo

PREVIEW OF AUTOMOBILE INDUSTRY:The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and Globalization. The sector seems to be optimistic of posting strong sales in the next couple of years in view of a reasonable surge in demand.The Indian automobile market is gearing towards having international standards to meet the needs of the global automobile giants and become a global hub. Players are strategizing to consolidate their position and gradually increase market penetration with the launch of new models, targeting different segments. Since the sector is price driven, huge investment is envisaged to remain competitive through cost advantage, for whichIndigenization is highly important. The product becomes dearer if it is manufactured using imported parts.

IT in the automobile sector plays a crucial role. Some players are working towards development of efficient production systems that control the entire production process with high precision and accuracy. Such systems working on real time operating systems allow efficient control of different parts of manufacturing and production. It is essential to leverage skills of different engineering disciplines to build these kinds of integrated systems.Analysts foresee high scope in the electronics for auto sector and expect the retailing of such electronics products to contribute a major chunk of future revenues.

The government is increasing the research and development (R&D) fund for the automobile industry over and above the Rs 1400 crores earmarked for next eight years. All laboratories in the country researching on automobile technology, such as *BHEL which is developing cell technology as alternative fuel, have also been brought together through the setting up of a national R & D working group. The group is working out a plan to link all major laboratories across the country to give a thrust to automotive research.

Indian automobile sector being a driver of product and process technologies, has become a excellent manufacturing base for global players, because of its high machine tool capabilities, extremely capable component industry, most of the raw material locally produced, low cost manufacturing base and highly skilled manpower. Not only a large number of world manufacturers have set up production bases in India but also a large number of foreign companies are collaborating with the auto component suppliers and vendors. Indian Automobile Components Industry has been making rapid strides towards achievement of world-class Quality Systems by imbibing ISO 9000/QS 9000 Quality Systems whereby the Indian Automotive industry has become more competitive in the export market due to its technological and quality advances, so much so that in quality conscious markets such as India today exports: Engine and engine parts, electrical parts, drive transmission & steering pats, suspension & braking parts among others. The sector is striding inroads into the rural middle class after its inroads into the urban markets and rural rich. It is trying to bring in varying products to suit requirements of different class segments of customers.

States like Rajasthan, Uttar Pradesh, Maharashtra, Andhra Pradesh and West Bengal

Page 3: Market Adaptation of Volkswagen Polo

are vying to woo global players with proposals including heavy tax exemptions and to create a more investor friendly regime, each state is proposing to provide all regulatory clearances at express speed.

The Government should promote Research & Development in automotive industry by strengthening the efforts of industry in this direction by providing suitable fiscal and financial incentives. The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for sponsored research and in-house R&D expenditure. This will be improved further for research and development activities of vehicle and component manufacturers from the current level of 125%.

In addition, Vehicle manufacturers will also be considered for a rebate on the applicable excise duty for every 1% of the gross turnover of the company expended during the year on Research and Development carried either in-house under a distinct dedicated entity, faculty or division within the company assessed as competent and qualified for the 12 purpose or in any other R&D institution in the country. This would include R & D leading to adoption of low emission technologies and energy saving devices.Government will encourage setting up of independent auto design firms by providing them tax breaks, concessional duty on plant/equipment imports and granting automatic approval. Allocations to automotive SEZ fund created for R&D of automotive industry shall be increased and the scope of activities covered under it enlarged.


Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial years.In 1952, the GOI set up a tariff commission to devise regulations to develop an indigenous automobile industry in the country. After the commission submitted its recommendations, the GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut operations. As a result General Motors, Ford and other assemblers closed operations in the country. The year was 1954 and this decision of the government marked a turning point in the history of the Indian car industry. The GOI also had a say in what type of vehicle each manufacturer should make. Therefore, each product was safely cocooned in its own segment with no fears of any impending competition. Also, no new entrant was allowed even though they had plans of a full-fledged manufacturing program. The restrictive set of policies was chiefly aimed at building an indigenous auto industry. However, the restrictions on foreign collaborations led to limitations on import of technology through technical agreements. In the absence of adequate technology and purchasing power, the car industry grew at a snail's pace in

Page 4: Market Adaptation of Volkswagen Polo

the 60’s. The demand for cars in 1960 was to the tune of 15,714. In the next two decades the number increased to 30,989 i.e. a CAGR of only 3.5 per cent.The other control imposed on carmakers related to production capacity and distribution. The GOI control even extended to fixation of prices for cars and dealer commissions. This triggered the start of a protracted legal battle in 1969 between some carmakers and GOI. Simply put, the three decades following the establishment of the passenger car industry in India and leading up to the early 1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this period was limited to two models viz. Ambassador and Padmini. It was only in 1985, after the entry of Maruti Udyog, that the car makers were given a free hand to fix the prices of cars, thus, effectively abolishing all controls relating to the pricing of the end product. In the early 80's, a series of liberal policy changes were announced marking another turning point for the automobile industry. The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of the industry was changed forever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the Suzuki Corporation of Japan. Car sales grew by 42 per cent Year-on-Year in 1985 after Maruti 800 was launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from 1981 to 1990.

In 1985, the GOI announced its famous broadbanding policy which gave new licenses to broad groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry. The car was launched as a "people’s car" with a price tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was well accepted by middle income families in the country and its sales increased from 1,200 units in FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-sized cars. The company has single handedly driven the sales of cars in the country cornering around 79.6% market share. With increasing competition from new entrants, this market share has plummeted to almost 62% in FY2000. A brief 3-year downturn till 1993 and car sales bounced back to register a 17 percent growth rate in 1997.Since then, the economy slumped into recession and sales of cars remained quite stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year for the Auto industry with the economy looking up. The automobile industry, crossed the half million mark for the first time in FY2000.Overwhelmed by newer models from new and existing players had led to an impressive shift from a constrained supply situation to a surplus one. Within the past decade, about 30 models have entered the Indian market with a number of models still awaiting launch. The delicensing of auto industry in 1993 opened the gates to a virtual flood of international auto makers into the country with an idea to tap the large population. Also the lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country. The Indian Automobile industry registered one of the strongest growth rates in FY’04.Aided by sustained economic recovery, the industry registered high growth rates in all major segments.

The growth story was led by Medium and Heavy Commercial Vehicles (M&HCVs) registering a 40% growth while Light Commercial Vehicles (LCVs) recorded a 32% jump in total sales. Passenger cars also registered an impressive 34% growth in FY’04 and total sales volume

Page 5: Market Adaptation of Volkswagen Polo

crossed the 1 million mark for the first time. Interestingly, two wheelers registered the lowest but healthy growth rate of 13% in FY’04. While motorcycle volumes tripped on a high base, scooters registered a 10% growth after 4 years of continuous decline. Three wheelers grew by 23% in FY’04. Apart from strong economic growth in all sectors, low interest rate regime, normal monsoon, continued infrastructure investment, fiscal measures like cut in excise duty (in case of cars), etc provided impetus for the growth. The year also saw a sharp 56% rise in export volumes with all the sectors registering more than 40% growth, signalling the rising international competitiveness of the industry.

Automotive Sector Demand Drivers


Favorable Government Policy

Household Income Trend

Availability OfConsumer


Product Availability


Infrastructure Vehicle Price

Page 6: Market Adaptation of Volkswagen Polo


Headquarters: Wolfsburg, Germany

Share of capital held: 100 %

Board of Management, Volkswagen Passenger Cars Brand:

Prof. Dr. Rer. Nat. Martin Winterkorn (CHAIRMAN)

Dr. rer. pol. Arno Antlit (CONTROLLING AND ACCOUNTING)

Dr.-Ing. Ulrich Hackenberg (TECHINICAL DEVELOPMENT)

Christian Klingler (SALES AND MARKETING)

Prof. Dr. Ing. Werner Neubaue (COMPONENT)

Prof. Dr. rer. pol. Horst Neumann (HUMAN RESOURCE AND ORGANIZATION)

Dr. rer. pol. h.c. Francisco Javier Garcia Sanz (PROCUREMENT)


In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].Its current tagline or slogan is Das Auto (in English The Car).

Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.

Page 7: Market Adaptation of Volkswagen Polo

History of Volkswagen

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 Käfer—or 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 KdF programmes 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 "Volksempfänger" radio receiver for instance.

On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was

established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16

September 1938.

VW Type 82E

Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the

prototype, which was recognizably the Beetle we know today. It was one of the first to be

evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.

Page 8: Market Adaptation of Volkswagen Polo

New factory started

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 Kübelwagen ("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.

Volkswagens were first exhibited and sold in the United States in 1949, but only sold two

units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a

"Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and

service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically

over the years, the total reaching one million in 1955.

Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidly in

European and North American markets. The company knew that Beetle production had to end

one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership

of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel

drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible

Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known

as the Polo, Golf and Passat.

Volkswagen had entered the super-mini market in 1976 with the Volkswagen Polo, a stylish and

spacious three-door hatchback designed by Bertone.

Page 9: Market Adaptation of Volkswagen Polo

The Volkswagen New Beetle concept, especially in North America.

In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car with a

resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in

opposition to VW management, who felt it was too backward-looking. Management could not

deny the positive public response to the concept car and gave the green-light to its development

as the New Beetle. The production car would be based on the Golf rather than the Polo, because

the Polo frame was too small for the car to pass crash test standards in the U.S. It has been quite

popular in the North America and is now gaining in the EU.

Volkswagen group — the Volkswagen Bora (the sedan, still called Jetta in the USA), New

Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, it was

beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo

156 and runner-up Audi A6.

In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi),

Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group


Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195—a

dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to

close out the decade with the release on several new vehicles worldwide and a barrage of


Electric and alternative fuel vehicles:

Clean diesel

A Blue Motion Volkswagen Polo

Volkswagen has been selling clean diesel-powered engines for the European market since

2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and

it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher

than gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with

clean diesel technology. Volkswagen is also developing hybrid technology for diesel-electric. A

Page 10: Market Adaptation of Volkswagen Polo

VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show,

which has a fuel economy of 70 mpg (3.3 liters per 100 km).

Electric vehicles:

Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen

boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles.

There will definitely be compact hybrid models, such as Polo and Golf, and without any great

delay”, with gasoline and diesel engines.

Volkswagen Group owns nine active automotive companies:

1. Audi: 99.55% ownership; the Audi marque is the sole active brand of the former Auto

Union, bought from Daimler-Benz on 30 December 1964.

2. Automobili Lamborghini:- 100% ownership by Audi AG; company was bought in June


3. Bentley Motors Limited:- 100% ownership by Volkswagen AG; the company (at the time

known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28 July 1998 from

Vickers, but did not include the 'Rolls-Royce' brand name. The Rolls-Royce marquee was

subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.

4. Bugatti Automobiles:- 100% ownership via the Volkswagen France subsidiary of

VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to

the Bugatti marque.

5. 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.

6. Škoda Auto:- 100% ownership since 1999.

7. Volkswagen Passenger Cars:- 100% ownership.

8. Volkswagen Commercial Vehicles (VWCV) or 'Volkswagen Nutzfahrzeuge' (VWN)

(German) — 100% ownership; started operations as an independent entity in 1995.

VWCV/VWN is in charge of all commercial vehicle developments within the Group and

has control over Scania and is a shareholder in MAN AG.

9. Scania AB:- 70.94% of voting rights as at 27 February 2009.

Page 11: Market Adaptation of Volkswagen Polo

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.

Volkswagen AG has built a new production plant in Pune in the Indian state of Maharashtra.

With investment totaling some 410 million euros, a full production plant with a press shop, body

shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial

park near Pune. The German brand and Europe’s largest automotive manufacturer will be

entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be

developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian

market offering all the features of a genuine Volkswagen.

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 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 its 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

Page 12: Market Adaptation of Volkswagen Polo

Volkswagen India Hierarchy Structure

Hierarchy Structure for Volkswagen Group Sales India Private Limited

Page 13: Market Adaptation of Volkswagen Polo

Products Profile for models available in India:


Technical specifications


Technical specifications

Vehicle Model Jetta 1.6 L (Petrol)


Jetta 2.0 L TDI (Diesel)

Trendline/ Comfortline

Engine Type 4-cylinder , 2 valves

Per Cylinder

4-cylinder , 4 valves Per


Displacement(liters/cc) 1.6/1595cc 2.0/1968cc

Max. Torque(NM at RPM) 148/3800 250/1500

Vehicle Model Passat TSI 1.8 Exclusive

Engine Type 4-cylinder , 4 valves Per Cylinder

Displacement(liters/cc) 1.8/1798cc

Max. Torque(NM at RPM) 250/1500-4500

Transmission 6 speed manual shift gearbox

Max. Power output kw(PS) @ RPM 118(160) at 4500

Emission Category BS 4

Price(Rs) 1,920,777

Page 14: Market Adaptation of Volkswagen Polo

Transmission 5speed manual


5 speed manual Gearbox

Max. Power output kw(PS) @ RPM 75(102) at 5600 81(110) at 4000

Emission Category BS 4

Price(Rs) 1,299,000 1,426,171/1,592 ,311

The Passat 1.8 L TSI is priced at Rs 19.20 lakh (ex-showroom New Delhi) while the Jetta 2.0 L diesel Comfortline is priced at Rs 15.92 lakh (ex-showroom New Delhi).The Passat comes with the TSI Petrol Engine.

This engine from Volkswagen is known for maximum power with minimum fuel consumption.

TSI engines are compact, high-powered and use less fuel thereby offering an enjoyable and involving drive, while cutting fuel consumption and CO2 emissions.

Volkswagen is largest car-maker in Europe and has a presence in 150 countries world-wide.


Technical specifications

Vehicle Model Touareg 3.0 TDI

Engine Type 6-cylinder , 4 Valves

per Cylinder

Displacement(liters/cc) 3.0/2967

Max. Torque(NM at RPM) 550/2000-2250

Page 15: Market Adaptation of Volkswagen Polo

Transmission 6 speed Automatic

Max. Power output kw(PS) @ RPM 176(240)@4000

Emission category BS 4

Price(Rs) 5,185,000

The Touareg is offered in two-wheel drive configuration. Four-wheel drive can be added as option. It is available in one variant V6 TDI which is powered by a 3.0-litre V6 Turbo Diesel Direct Injection (TDI) V6 diesel engine that cranks out an impressive 225 bhp of power at 4000 rpm and 500 Nm of torque at 1750 rpm. The engine is mated to a 6-speed automatic transmission that delivers good fuel economy. The transmission also features a driver-oriented Dynamic Shift Program (DSP) that helps the driver to shift gears smoothly.

The SUV is capable of speeds of up to 200km/h. The V6 diesel accelerates from 0-100 km/h in just 9.9 seconds. It delivers impressive performance, and a smooth ride coupled with decent mileage.

The Touareg possesses independent front and rear double wishbone suspensions with steel springs and anti-roll bars. The handling is hugely responsive and seats are comfortably fitted to offer a great comfort over long drives.


Technical Specification

Vehicle Model Beetle 2.0 Auto

Engine Type4-cylinder , 2 Valves per Cylinder


Max. Torque(NM at RPM)


Transmission 6 speed Automatic

Max. Power output kw(PS) @ RPM


Emission category BS 4



Page 16: Market Adaptation of Volkswagen Polo

Powered by a 2.0-liter Petrol Engine, Beetle is a smooth, Quiet and a refined car, It boasts 116bhp @ 5400rpm which feels quite sluggish at the initial ratios. 172 Nm Torque @ 3200 rpm gives unmatched city ride and It delivers good power in city even at low RPMs. Six speed Auto Tip-tronic does duty in beetle, Gears shifts are silky smooth helping to provide a comfortable drive.

The Volkswagen New Beetle is real fun to drive, the steering felt to be tight which makes city driving un-comfortable but still its quick and direct. If you plan to perform a drag race, Then "Please stay away from me" is what beetle told us when we tried to push it hard. Handling around corners is excellent and all around disc brakes perform the job well.Beetle takes up any good city roads & speed breakers easily, also it rides well on bumpy roads too. But avoid the potholed roads due to the low ground clearance of 120mm, there are all possibilities to get this Bug hurt. The tyres of beetle gives great ride comfort around corners and 195/65 R15 Pirelli is a nice select.


This elegant machine comes in the same platform as that of Audi A8.The main competitor of phaeton

is obviously Audi A8 itself. BMW 7 series and Mercedes Benz s class are competitors outside the family.

Phaeton is a D+ segment sedan which is powered by 3600cc, V6 petrol engine with maximum power of 280 bhp at 6250 rpm and a Maximum Torque 370 Nm at 3500 rpm. It comes with 6 speed automatic transmission and having a top speed of 240 Km/h.

Phaeton comes with a fully handcrafted interior. Volkswagen has included almost all luxurious features including AC with Dual Zone Climate Control, Sun Roof, Auto Viper, Auto Headlamp

Vehicle Model Phaeton 3.0 TDI

Engine Type6-cylinder , 4 Valves

per Cylinder

Displacement(liters/cc) 3.0/2967

Max. Torque(NM at RPM)


Transmission6 speed Automatic

with program

Max. Power output kw(PS) @ RPM


Emission category BS 4

Price(Rs) 7,629,128

Page 17: Market Adaptation of Volkswagen Polo

and 8 Airbags.

This Bombproof Luxury is marketed in India for a price ranging from 75 to 80 lakhs. Even though the car is slightly pricey phaeton is doing good on Indian roads.


A true

leader in the hatchback segment of the Indian car industry when it comes to space, style, comfort, safety and fuel efficiency. There are 7 variants such as 1.2L 75 bhp Petrol Trendline, 1.2L 75 bhp Petrol Comfortline, 1.2L 75 bhp Petrol Highline, 1.2 L 75 bhp TDI Diesel Trendline, 1.2L 75 bhp TDI Diesel Comfortline and 1.2L 75 bhp TDI Diesel Highline and 1.6 Petrol (which still has some time to hit the showrooms country wide). The 5-speed manual gearbox transmits power with short and accurate shifts. Height-adjustable driver seat, ABS and Remote Keyless Entry are some of the features amongst others.

Vehicle ModelPolo 1.2 L (Petrol)


Polo 1.2 L (Diesel) Trendline/Comfortline/Highline

Engine type 3 cylinder 3 Cylinder

Displcement (Liters/cc)

1.2/1198cc 1.2/1199cc

Max. Torqur (NM at rpm)

110/3750 180/2000

Transmission 5 speed manual Gearbox 5 speed manual Gearbox

Max. Power output

kw(PS)@rpm55(75)@5400 55(75)@4200

Emission category BS 4

Price(Rs) 442000, 493000, 582500 542000, 592500, 682500

Page 18: Market Adaptation of Volkswagen Polo

Reasons for

launching Polo in

Page 19: Market Adaptation of Volkswagen Polo

B+ Segment

Page 20: Market Adaptation of Volkswagen Polo

YTD - Year to date 12 MR – 12 month rolling (Start of the year till May) From June- May

Page 21: Market Adaptation of Volkswagen Polo

The passenger car sales are still boosting even after the prices of the cars have gone high. With the increase in the raw materials and hardening interest rates the prices of the cars have gone up between 2 and 5 per cent. Every car manufacturers have hiked their price for all the models. But looks like all these factors have not affected as the month of March saw the sales of passenger car rose on an average by 28 per cent.

India’s largest car manufacture, Maruti Suzuki’s domestic sales recorded an increase of 70 per cent by selling “Swift and Ritz” 89,420 units against the 52,648 units last year even though there market share has fallen considerable from 62.18% to 40.92% for the above mentioned cars. Another leader in auto market, Hyundai Motor India also saw a good sales growth of more than 100 per cent in domestic passenger car with sales 25,988 units in May 2010, compared to 12,408 units last year for “i-20 and Getz”. The domestic sales of General motors also rose by 7 per cent. It was a Spark-ling victory for General Motors India with smashing sales of Chevrolet Spark from the small car segment. The model was sold in 2250 units in May and the overall sales of GM models like Chevrolet Aveo Uva, Chevrolet Optra, Chevrolet Captiva and MUV Chevrolet Tavera too saw a good sales report. Now the company plans to roll out another small car for India which will cost lower than Spark.

Another reason for car sales boost is launch of new models this year. With so many models from almost all the car makers has given a good push to the auto sales. The export sales also did not lag behind. Maruti’s export sales figure registered a 41 per cent growth and the credit line goes to the its latest compact model Maruti Swift from A2 segment and recently launched Swift Dzire from  A3 extension.

The export sales of Hyundai also faced an impressive figure of raise in 57 per cent at 15,751 units. The company was able to hold on with the strong figures even after the higher interest rates. Recently launched i10 received good response from the buyers and soon the company will introduce the diesel version of i10.

Page 22: Market Adaptation of Volkswagen Polo

Percentage of market share for B+ - Segment covering calendar year “2009 and 2010”

Source: Volkswagen India sales office

The above bar-chart gives a complete detailed analysis of individual cars in b+ segment and how much market percentage they are holding. It is clearly visible from the figure that Maruti swift is the market leader but have lost the ground to Hyundai’s i-20 and various new entries in the market.

This figure also gives us an insight of how well the new entries are doing in the market.

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Source – Volkswagen NSC, Mumbai Fig-1 Figures till the month of March


From the above representation it is shown that the Indian automotive industry showed a comprehensive growth of 27.17%. Figure two however shows a complete breakup of industry on the basis of Utility Vehicle and the Passenger car segment. Also it shows what percentage it holds in the total market share and its growth with respect to Year 09.

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Complete Technical and Feature specification

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The above specifications show us that after a detailed study of the B+ segment it was decided that “POLO” should be kept as competitive and similar to its competitors as possible.

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Market Break up for Sedan and Hatch Back Segment


Fig-2 Fig-3

Source- Volkswagen NSC, India

Fig 1 – Shows us a detailed breakup of “Sedan” segment, its market share and the growth it posted over calendar year 09

Fig 2 – Shows us a detailed breakup of “Hatch Back” segment, its market share and the growth it posted over calendar year 09

Fig 3 – Shows market break up between “Sedan segment” and “Hatch Back segment” considering market as hundred percent and the growth it posted as a combined segment over calendar year 09

German segment Coding

Indian segment Coding

A000 HB A-A00 HB A , B , A0 HB B+A0 NB CA NB Lower DB NB Upper DC NB ED NB E

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Competitors Set For VW Polo

Brands Vitals

VW Polo Ford Figo Fiat Punto Hyundai i-20

Engine 3-cyls in Line 4-cyls in line 4-cyls in line 4-cyls in linePower 74 bhp @ 5400rpm 71 bhp @ 5400rpm 67 bhp @ 6000rpm 79 bhp @ 5200rpm

Torque11.2 kgm @ 3750rpm

10.3 kgm @ 4000rpm

9.76 kgm @ 2500rpm

11.4 kgm @ 4000rpm

Transmission 5 speed manual 5 speed manual 5 speed manual 5 speed manualWeight 1030 kg 1055 kg 1140 kg 1065 kg


Hyundai i-20

Maruti Swift

Ford Figo

Fiat Punto

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0-100km/hr 16.50 sec 22.09 sec 18.16 sec 15.21 sec

Fuel Efficiency 10.9 kpl 11.25 kpl 9.7 kpl 11.2 kpl

Facts Which Make Polo The Best Buy In Its Segment

1. Interiors A bend of neat interiors along with ample storage space, in the form of big glove

box, door pockets and very generous boot space. Plastic quality is the best among its segment Interior upholstery the best in its class

Good headroom Gear shift knob

and interior handles in chrome

2. Exteriors Good sporty design

Innovative Boot opener

Chrome strip in front grill

Green tinted heat absorbing glass

Galvanized body with 6 years anti-corrosion warranty 3 years anti color fade warranty Rear sporty spoiler standard

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Technical Best suspensions among its segment Gear shift the best in its class Great handling at corners

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Source- Auto Car (April-10), Zig Wheels (May-10), Polo VW Brochure


Source- Business Standard


The wait for the Vento is finally coming to an end. Come July 6 and Volkswagen will launch the Vento in India, taking this Polo based sedan straight into the territory of the recently launched facelifted Hyundai Verna Transform and Honda's chart busting City.

The Vento is likely to start above Rs 7 lakh with the top end versions going above Rs 9 lakh. With 50 mm of extra

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wheelbase over the Polo, it means there is more space on the inside and those who cribbed about the Polo's lack of rear legroom might appreciate its sedan sibling.

 Motive power for the car will come from two engines - a diesel and a petrol. While the petrol powered motor will be a 1.6-litre engine, producing 105 bhp (the same as the one on the BSIII Jetta), the diesel motor might be a 1.6-litre, common rail four-cylinder engine with 105 bhp. Incidentally, this engine is also found in the Polo Cup Racers in India that are tuned to produce 130 bhp. Volkswagen might offer both manual and automatic options, the latter being a six-speed DSG gearbox.

On the inside there is wee bit more space, better seats and more shoulder and headroom. Features-wise, the car has new controls on the dashboard and a new design steering wheel with more chrome inserts all around than the Polo.

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