VW shuts Delhi & Bengaluru regional sales offices

Volkswagen's Indian operations seem to be struggling and the road ahead doesn't seem too bright for the German car maker. Our previous article mentioned about how the Volkswagen Group witnessed a steep 53% decline in net profits in FY14. It also lowered its market share target from 20% to 7-8% by 2018.

An article in The Economic Times reports that Volkswagen has discontinued its Delhi and Bengaluru regional sales offices, after local sales remain stagnant. The Delhi office looked after marketing and sales operations in the north and east India while the Bengaluru catered to the southern region. These have now been merged with its national sales company and now will be centrally coordinated from the company's local head offices in Mumbai. This move is said to reduce local operational costs for the company.

Presently, VW sells approximately 4,000 cars each month with 3 cars in its portfolio in India and has a market share of 1.64% in terms of sales.

It is one of the few companies whose exports are more than their domestic sales. As per our previous article, the company exported 59.8% of the locally produced cars. The company has been banking on exports to fully utilize its production capacity and remain profitable in the country.