Volkswagen's India 2.0 Strategy Puts Hatchback on the Backburner | CORPORATE ETHOS

Volkswagen’s India 2.0 Strategy Puts Hatchback on the Backburner

By: | May 25, 2018

May 25: Volkswagen group is redesigning its aim for the coming years with its new strategy that’s named India 2.0. As a part of it, the company is shifting its focus to SUVs and sedans, omitting hatchback from its future portfolio.

The rejig will cover vehicles from both Volkswagen and Skoda, each of which will have an SUV and Sedan each this year. The omission of hatchback comes as a result of the group’s aim to bolster its profit rather than expanding its volume.

Volkswagen had earlier planned for three cars each for Volkswagen and Skoda. One among them was planned to be hatchback, while the others would be an SUV and a sedan. Additionally, the company also set a volume target of 350,000 units in a year. But this has been now reduced to 180,000 units a year accounting to the prioritization of profit over volume.

The development will ensure that both the manufacturer remains focused on SUVs and sedans, including compact SUV, for a period of five years, i.e. till 2022. The approach might change afterward, as Volkswagen Group reconsiders in case if it feels that there exists a business case for hatchbacks.

Currently, Volkswagen’s Polo remains the sole hatchback from the duo. The model currently has a monthly sale of about 2000 units. Skoda’s last outing with a hatchback was with the Fabia, whose production was ceased a few years back owing to losses.

The India 2.0 plan (MQB A0), spearheaded by Skoda Auto, comprises the next generation modular vehicle architecture plan. A new modular manufacturing unit is also likely to be setup at Chakan to accommodate a new-gen platform for the models.