Volkswagen Plans To Double Its Distribution Network In India

Also intends to increase its brand spend prior to the launch of Polo model in 2010

German auto maker, Volkswagen plans to double its distribution network in India, reported THE ECONOMIC TIMES.

The company also intends to increase its brand spend prior to the launch of its Polo model for the small car segment, which is due to debut in India in early 2010.

Neeraj Garg, director of passenger cars at Volkswagen Group India, said: Gearing up to the launch of our high volume model Polo, we are expanding our distribution network. By the end of this year the company will have 40 dealers, quoted the newspaper.

Currently, German automaker has 22 dealership outlets in the country, including two in Chennai. The company is expected to roll out hatchback and sedan versions of Polo in 2010 from its INR38 billion Pune plant.

Mr. Garg added: This year the B-plus segment will be around 300,000 units in size. The entry of new players will further expand the market. We sold 1,900 units during Jan-Aug this year.”

Volkswagen is expected to bring its Beetle model to India as a fully built unit. Currently, for the fiscal year 2009, the company has aimed to sell 3,000 units of 'Jetta' and 'Passat', up from 1,566 units sold in 2008.

The Volkswagen Polo is expected to be built at the OEM's plant in Pune with an 80% local content rate, reported AutomotiveWorld.com, citing Norbert Hoppel, deputy general manager of parts organization at Volkswagen.