Multi Brand Disadvantages ]VOLKSWAGEN group, German, no matter how big or how serious Automobile giant they are, but at the same time there policies and approach towards Indian market can be termed as unorganised and selfish. ( also typical Hitler mindset, egoist and dominating )]
As VW group is in India, me as an Indian automobile enthusiast have some remarks and views of this Auto giant,
Since Skoda as a Czech manufacturer, controlled by VW group decided to enter India in late nineties, what we can say as VW's first step towards Indian Automobile industry, this so called first step itself was a proof of VW group nature of fear of failure. Skoda from the day one was suppose to be “Bali Ka Bakra " and till date the brand is treated like that.
VW group has always given step child treatment to Skoda. We can easily trace out how much confusion was there regarding what to launch (Felicia, Fabia or Octavia) and with whom ( Eicher or Firodia's ), the news to enter was in 1996-97 and could only realise in 2000. VW group not really much concerned and Skoda’s infamous officials at that time could only wait and watch for decisions & orders from VW. but at last with some Import kits and slower assembly started there inning here. The biggest plaque in Skoda since earlier days till even today is the inexperienced and non-technical higher & middle management and officials, lack of co-ordination between manufacturing, marketing, service, warranty and logistic departments, and we know the consequences of all this as no one is ready to associate the brand with peace of mind. And all this year VW never seriously tried to correct or streamlines this. I still remember the days in 2002-03-04, almost any spare would be made available in “chore” market in Aurangabad, thanks to some higher official in spares who was in hurry to make more and more money.
Production at the temporary plant in Waluj and then Shendra use to vary according to availability of kits they have for assembly, no proper strategy was been followed , the board meetings were more to resolve political issues and game plan such was worst the situation. The then MD himself was more concern for his own progress and benefits. Models like old Fabia sedan, Combi would have been great success, but VW group poor attention, Skoda's own selfish and confused officials never gave proper thought & strategy to build up strong base in the market.
VW even today treat Skoda brand as trial & error brand in Indian market, not only this but VW makes sure that Skoda peoples should be a team of confused & directionless group. VW for the sake of Passat the VFM product like Superb gets an PD engine at launch ( New Superb ) and after watching Passat not getting success then only gave green signal to Skoda to use CR TDi to be used in Superb now. As i said trial and error brand Skoda was first allowed to use TSI engines in there range so that if at all those engine fails to deliver then the harm would be to Skoda, but the TSI succeded and now VW thought its OK to use TSI in Jetta and Passat. Sibling rivalry across all model line, be it the Laura v/s Jetta, Passat v/s Superb and biggest between Fabia v/s Polo it is always Skoda who has to survive. Sibling rivalry will be very intense between Skoda/ Audi/ VW, if proper policies are not followed. Service part of the Skoda is the weakest link in the whole operation.
Audi at other end is looked upon as an brand to just make fat profit. Why is VW limiting the potential of Audi in Indian market where comparable brand like Merc and BMW are making not only huge profit but decent sales figures and also gaining lot of respect and reputation on India. If we minus Q7 & Q5, there is nothing really happening with the Audi brand.
A4, A6 if not A8, are still very good and promising products. But lack of proper marketing, inconvenient engine options, lack of assurance in service marketing etc. also giving this otherwise popular brand, negative publicity. With Audi well known brand to Indians because of its association with Cricket & Ravi Shastri, VW or Audi themselves never tried or explored the possibility of further strengthening the same relation.
When Volvo can do it by sponsoring cars for cricket series and TV commercials in-between live cricket matches, Audi almost lost the same rightfully easy opportunity.
To VW, i would like to say,
“We know our vehicle buying parameters are very different than the rest of the world, we almost expect a package of best of all worlds, but then it’s your skill to deliver near to it, if you want to survive. We and the whole world knows that there are only couple of numbers of platform you have ( with umpteen thousand common parts ) in here on which many VW group of companies ( VW, Skoda, Audi, Seat etc ) production models are based and shared. Now it's because to reduce production, sharing of assembly line and so on, but then it also increases your profit, so why not pass some price benefit to consumer. Restructuring pricing over entire range is necessary. Again with so much common spares all over the range, its hard to believe spares scarcity, provision of required spares should be number one priority to succeed. And with respect to service part especially Skoda, Beg Borrow or Steal service peoples from Maruti, Hyundai or Tata, or easier way is to find some Automobile Enthu members at Team-Bhp to resolve the issues. Other manufacturer are already into different league as far as service part is considered, they are coming up with better and better service packages like road side assistance, 24 X 7 service, etc and you are lacking ABC of service provisions. And finally if you are looking success from India, meet our expectations, give us satisfaction and happiness if not lot of pampering ( considering rate of development of our market ). Don’t show us the money by increasing stakes & shares here and there, rather invest in R & D especially for India, cause in terms of money our business and industrial Tycoons are capable enough to gulp big companies in single stroke ".
I hope if at all my words affects the VW group, may it be in positive way.
Best of Luck.
Last edited by ganesh_evo75 : 3rd May 2010 at 17:11.
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