Domestic market growth likely to close on 12-14% this year

It is a very well known fact that Indian auto market is the most booming and flourishing auto industry in the world. But this year till now, it saw a slow growth. The continuously rising petrol prices tumbled the car sales in India. In the year of 2010, Indian Auto Market saw a growth of 30% or so where as this year it is expected that the on the whole, Indian auto market is expected grow around only 10 to 14%.

The major reason of such slower growth is obviously the sky rising fuel rates. Furthermore, Marco-economic factors are also not positive. However, the member of board of Volkswagen Passenger vehicle division, Mr. Neeraj Garg, is expecting that Volkswagen group sales could register a decent growth in the year of 2011. In the year of 2010, Volkswagen India managed to sell around 32,500 cars in India and in the 1st 6 months of this year, Volkswagen recorded a sale of 39,366 cars, which is absolutely impressive.

When enquired about the sustainment of the sales figures in the rest of year, Mr. Garg told that it is a little difficult to tell now, but it might be possible that company could see a little slow-down in sales by the end of the year. He also agreed to the fact that prospective consumers are pushing the purchase and because of this, the firm is able to get only a fewer bookings. Also it is expected that Volkswagen will soon launch a brand new model of Volkswagen Jetta.

Mr. Neeraj Garg also told that Volkswagen India is in the middle of finalizing the process of its strategy on stepping in the pre-owner car bazaar. However, Volkswagen India has already prepared well enough.

Another thing that is noticeable is that Volkswagen India can clearly see the consumers shifting from petrol cars to diesel cars and that is because of the rising petrol prices. In the year of 2010, about 62 to 63% of the people purchased the Volkswagen Polo petrol variant. And in the first six months of 2011, its 50-50, people went for 50% petrol and 50% diesel models.

Nonetheless, Volkswagen India is counted amongst the most prominent car manufacturers in India and some of the most appreciated models of Volkswagen include, Volkswagen Polo, Volkswagen Beetle, Volkswagen Passat, Volkswagen Jetta and many more.