Volkswagen India: Entry strategy

Abstract

Volkswagen, was the original and the biggest selling brand of the Volkswagen group, which also owned Audi, Bentley, Bugatti, Lamborghini, Seat and Skoda. In 2009 it acquired 49.9% stake in Porsche as well. In 2010 its revenues and profits were Euro 127 billion and 7.2 billion respectively. VW group was the world’s third largest automaker behind Toyota and General Motors. Toyota sold roughly 8.4 million cars every year, 1.2 million more than Volkswagen. Headquartered in Wolfsburg, Germany, VW operated 60 plants around the world. VW had a world market share of 11.4% in 2010. Its core markets were Germany and China. It was the market leader in Europe with a 20% market share. It aimed to become the world’s largest car maker by 2018. With a growth of 30% in the Indian automobile industry, India was to play an important role in realizing VW’s global ambitions . Booz & Co. predicted that India would sell 6 million cars by 2020 up from 1.8 million in 2011.