Ashish Gupta: Volkswagen Remains Committed to Vehicle Safety, Refusing to Compromise for Lower Prices

Over the last few years, we have witnessed a significant shift in customer preferences when it comes to purchasing new cars. OEMs have also prioritized safety, build quality, and features over fuel efficiency, maintenance cost, and price. With a growing focus on safety, Volkswagen’s Virtus and Taigun have garnered attention for receiving 5-star safety ratings in the Global NCAP results for 2023. Volkswagen has always been known for its high safety standards, and the INDIA 2.0 models have made ‘German build quality’ accessible to a wider range of customers. The sales numbers reflect the willingness of Indian buyers to pay more for the peace of mind that comes with better safety.

The sales numbers of Volkswagen India have shown a 30% year-on-year growth in 2023 compared to July 2022, indicating the success of the Taigun and Virtus. The demand for the Taigun has increased by 36% year-on-year in July 2023, and Volkswagen claims similar increments for the Virtus and Tiguan. Ashish Gupta, Brand Director of Volkswagen Passenger Cars India, stated in a recent conversation with TOI Auto that while customers always knew Volkswagen made safe cars, third-party certification helps customers identify the baseline of what they need. Safety has become a priority among customers, and it is now among the top three reasons for buying a new car, surpassing fuel efficiency, maintenance cost, and price.
The success of the MQB-A0 platform and the INDIA 2.0 strategy does not imply the introduction of more affordably priced Volkswagens in India. Gupta emphasized that Volkswagen India’s strategy is to position the brand as ‘premium accessible.’ While the Taigun and Virtus have been successful, the brand’s focus remains on the premium segment. Volkswagen aims to ensure profitability and sustainability in the market to invest in future projects and bring more cars from their global portfolio to India.

Despite the growth of the Tiguan SUV from Volkswagen’s global portfolio, it continues to have low volumes and is considered an expensive option. This suggests that upcoming global products from Volkswagen in India would naturally be positioned in the premium end of their respective segments. To promote sales of these products, a competitive pricing strategy will be necessary. However, compromising safety features for cost reduction is not a route Volkswagen would consider. The brand adheres to a golden rule of never compromising on safety features due to cost pressures. While the brand focuses on cost optimization through engineering efforts and supply chain cost reductions, the basic DNA of Volkswagen vehicles will always prioritize safety.

Volkswagen seems content with the Taigun and Virtus models currently available in the market, and to maintain excitement among buyers, special editions of these models have been launched. The response to the GT Edge collection for the Virtus and Taigun has been encouraging, with close to 800 bookings received in the first four weeks. The popularity of the Virtus GT Edge black edition has led to bookings being filled until November 2023, while the Taigun editions have a waiting period until September.
Regarding electric vehicles, Volkswagen India’s plans remain unchanged, and major developments and commercial launches can be expected around 2025.