INTRODUCTION TO PROJECT

The project title is “Volkswagen’s most awaited car POLO, reasons for placing the car in B+
segment and a detailed analysis cum benefits of various research works undertaken for
POLO.

This project helps us understand the present automobile industry, its trends and throws a
considerable amount of light on how a company like, VOLKSWAGEN, which is so rich in its
automotive experience, had to and is still doing good amount of ground work to understand the
dynamics of the Indian market.

The main insight which the project gives is that the company is leaving no stone unturned to
understand the market, so as to continue its constant endeavor towards success.

Making of this project report has not only helped me understand the industry and product better
but also to analyze the findings of the market research in an improved manner.

OBJECTIVES

1. To analyze the growth pattern of passenger car segment with primary focus on B-
segment.

2. To find out how the market research activities have helped VOLKSWAGEN to come up
with products meant for Indian market.

3. To find out the reason as to why POLO was specifically launched in B-segment
PREVIEW OF AUTOMOBILE INDUSTRY:
The automobile industry, one of the core sectors, has undergone metamorphosis with the advent
of new business and manufacturing practices in the light of liberalization and Globalization. The
sector seems to be optimistic of posting strong sales in the next couple of years in view of a
reasonable surge in demand.
The Indian automobile market is gearing towards having international standards to meet the
needs of the global automobile giants and become a global hub. Players are strategizing to
consolidate their position and gradually increase market penetration with the launch of new
models, targeting different segments. Since the sector is price driven, huge investment is
envisaged to remain competitive through cost advantage, for which
Indigenization is highly important. The product becomes dearer if it is manufactured using
imported parts.

IT in the automobile sector plays a crucial role. Some players are working towards development
of efficient production systems that control the entire production process with high precision and
accuracy. Such systems working on real time operating systems allow efficient control of
different parts of manufacturing and production. It is essential to leverage skills of different
engineering disciplines to build these kinds of integrated systems.
Analysts foresee high scope in the electronics for auto sector and expect the retailing of such
electronics products to contribute a major chunk of future revenues.

The government is increasing the research and development (R&D) fund for the automobile
industry over and above the Rs 1400 crores earmarked for next eight years. All laboratories in
the country researching on automobile technology, such as *BHEL which is developing cell
technology as alternative fuel, have also been brought together through the setting up of a
national R & D working group. The group is working out a plan to link all major laboratories
across the country to give a thrust to automotive research.

Indian automobile sector being a driver of product and process technologies, has become a
excellent manufacturing base for global players, because of its high machine tool capabilities,
extremely capable component industry, most of the raw material locally produced, low cost
manufacturing base and highly skilled manpower. Not only a large number of world
manufacturers have set up production bases in India but also a large number of foreign
companies are collaborating with the auto component suppliers and vendors. Indian Automobile
Components Industry has been making rapid strides towards achievement of world-class Quality
Systems by imbibing ISO 9000/QS 9000 Quality Systems whereby the Indian Automotive
industry has become more competitive in the export market due to its technological and quality
advances, so much so that in quality conscious markets such as India today exports: Engine and
engine parts, electrical parts, drive transmission & steering pats, suspension & braking parts
among others. The sector is striding inroads into the rural middle class after its inroads into the
urban markets and rural rich. It is trying to bring in varying products to suit requirements of
different class segments of customers.

States like Rajasthan, Uttar Pradesh, Maharashtra, Andhra Pradesh and West Bengal
are vying to woo global players with proposals including heavy tax exemptions and to create a
more investor friendly regime, each state is proposing to provide all regulatory clearances at
express speed.
The Government should promote Research & Development in automotive industry by
strengthening the efforts of industry in this direction by providing suitable fiscal and financial
incentives. The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for
sponsored research and in-house R&D expenditure. This will be improved further for research
and development activities of vehicle and component manufacturers from the current level of
125%.

In addition, Vehicle manufacturers will also be considered for a rebate on the applicable excise
duty for every 1% of the gross turnover of the company expended during the year on Research
and Development carried either in-house under a distinct dedicated entity, faculty or division
within the company assessed as competent and qualified for the 12 purpose or in any other R&D
institution in the country. This would include R & D leading to adoption of low emission
technologies and energy saving devices.
Government will encourage setting up of independent auto design firms by providing them tax
breaks, concessional duty on plant/equipment imports and granting automatic approval.
Allocations to automotive SEZ fund created for R&D of automotive industry shall be increased
and the scope of activities covered under it enlarged.

AUTOMOBILE INDUSTRY – WHEELS OF CHANGE:

Between 1910 and 20's the automobile industry made a humble beginning by setting up
assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew
consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd
(PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge
DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a
manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence
Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled
by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the
initial years.
In 1952, the GOI set up a tariff commission to devise regulations to develop an indigenous
automobile industry in the country. After the commission submitted its recommendations, the
GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut
operations. As a result General Motors, Ford and other assemblers closed operations in the
country. The year was 1954 and this decision of the government marked a turning point in the
history of the Indian car industry. The GOI also had a say in what type of vehicle each
manufacturer should make. Therefore, each product was safely cocooned in its own segment
with no fears of any impending competition. Also, no new entrant was allowed even though they
had plans of a full-fledged manufacturing program. The restrictive set of policies was chiefly
aimed at building an indigenous auto industry. However, the restrictions on foreign
collaborations led to limitations on import of technology through technical agreements. In the
absence of adequate technology and purchasing power, the car industry grew at a snail's pace in
the 60’s. The demand for cars in 1960 was to the tune of 15,714. In the next two decades the
number increased to 30,989 i.e. a CAGR of only 3.5 per cent.
The other control imposed on carmakers related to production capacity and distribution. The GOI
control even extended to fixation of prices for cars and dealer commissions. This triggered the
start of a protracted legal battle in 1969 between some carmakers and GOI. Simply put, the three
decades following the establishment of the passenger car industry in India and leading up to the
early 1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this period
was limited to two models viz. Ambassador and Padmini. It was only in 1985, after the entry of
Maruti Udyog, that the car makers were given a free hand to fix the prices of cars, thus,
effectively abolishing all controls relating to the pricing of the end product. In the early 80's, a
series of liberal policy changes were announced marking another turning point for the
automobile industry. The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd
(MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of the industry was
changed forever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the
Suzuki Corporation of Japan. Car sales grew by 42 per cent Year-on-Year in 1985 after Maruti
800 was launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from 1981
to 1990.

In 1985, the GOI announced its famous broadbanding policy which gave new licenses to broad
groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the
licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing a
complete facelift to the Indian car industry. The car was launched as a "people’s car" with a price
tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was well accepted
by middle income families in the country and its sales increased from 1,200 units in FY84 to
more than 200,000 units in FY99. However in FY2000, this figure came down due to rising
competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. MUL extended its
product range to include vans, multi-utility vehicles (MUVs) and mid-sized cars. The company
has single handedly driven the sales of cars in the country cornering around 79.6% market share.
With increasing competition from new entrants, this market share has plummeted to almost 62%
in FY2000. A brief 3-year downturn till 1993 and car sales bounced back to register a 17 percent
growth rate in 1997.Since then, the economy slumped into recession and sales of cars remained
quite stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year
for the Auto industry with the economy looking up. The automobile industry, crossed the half
million mark for the first time in FY2000.Overwhelmed by newer models from new and existing
players had led to an impressive shift from a constrained supply situation to a surplus one.
Within the past decade, about 30 models have entered the Indian market with a number of
models still awaiting launch. The delicensing of auto industry in 1993 opened the gates to a
virtual flood of international auto makers into the country with an idea to tap the large
population. Also the lifting of quantitative restrictions on imports by the recent policy is
expected to add up to the flurry of foreign cars in to the country. The Indian Automobile industry
registered one of the strongest growth rates in FY’04.Aided by sustained economic recovery, the
industry registered high growth rates in all major segments.

The growth story was led by Medium and Heavy Commercial Vehicles (M&HCVs) registering a
40% growth while Light Commercial Vehicles (LCVs) recorded a 32% jump in total sales.
Passenger cars also registered an impressive 34% growth in FY’04 and total sales volume
crossed the 1 million mark for the first time. Interestingly, two wheelers registered the lowest but
healthy growth rate of 13% in FY’04. While motorcycle volumes tripped on a high base,
scooters registered a 10% growth after 4 years of continuous decline. Three wheelers grew by
23% in FY’04. Apart from strong economic growth in all sectors, low interest rate regime,
normal monsoon, continued infrastructure investment, fiscal measures like cut in excise duty (in
case of cars), etc provided impetus for the growth. The year also saw a sharp 56% rise in export
volumes with all the sectors registering more than 40% growth, signalling the rising international
competitiveness of the industry.

Automotive Sector Demand Drivers

Favorable Government
Policy

Availability Of
Consumer
Household
Income Trend Finance

CAR MARKET
DEMAND DRIVERS

Traffic
&
Product Availability Infrastructure
Vehicle Price
 INTRODUCTION TO VOLKSWAGEN

Headquarters: Wolfsburg, Germany

Share of capital held: 100 %

Board of Management, Volkswagen Passenger Cars Brand:

Prof. Dr. Rer. Nat. Martin Winterkorn (CHAIRMAN)

Dr. rer. pol. Arno Antlit (CONTROLLING AND ACCOUNTING)

Dr.-Ing. Ulrich Hackenberg (TECHINICAL DEVELOPMENT)

Christian Klingler (SALES AND MARKETING)

Prof. Dr. Ing. Werner Neubaue (COMPONENT)

Prof. Dr. rer. pol. Horst Neumann (HUMAN RESOURCE AND

ORGANIZATION)

Dr. rer. pol. h.c. Francisco Javier Garcia Sanz (PROCUREMENT)

Hubert Waltl (PRODUCTION AND LOGISTICS)

In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:
Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].
Its current tagline or slogan is Das Auto (in English The Car).

Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out
of Love for the Car, or, For Love of the Automobile, as translated by VW in
other languages.
History of Volkswagen

Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly
after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes
to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka
discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938
"KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought
out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the
Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for
Hitler's mother.

After some time, they planned to change some features regarding various aspects. These changes
included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and
parts. The intention was that ordinary Europeans would buy the car by means of a savings
scheme ("Save five Marks a week, if you want to drive your own car"), which around
336,000 people eventually paid into. The VW car was just one of many KdF programmes which
included things such as tours and outings. The prefix "Volks" ("People's") was not just applied
to cars, but also to other products in Europe; the "Volksempfänger" radio receiver for instance.
On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was
established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16
September 1938.

VW Type 82E

Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the
prototype, which was recognizably the Beetle we know today. It was one of the first to be
evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.
New factory started

The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called
Wolfsburg, which had been purposely built for the factory workers. This factory only produced
a handful of cars by the time war started in 1939. None were actually delivered to any holder of
the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on 20
April 1938 (his 49th birthday).

At the times of 1st world War, Volkswagen War meant production changed to military vehicles,
the Type 82 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model),
and the amphibious Schwimmwagen which were used to equip the German forces.

By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still
in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars
had to be bartered for new vehicles.

Volkswagens were first exhibited and sold in the United States in 1949, but only sold two
units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a
"Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and
service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically
over the years, the total reaching one million in 1955.

Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidly in
European and North American markets. The company knew that Beetle production had to end
one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership
of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel
drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible
Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known
as the Polo, Golf and Passat.

Volkswagen had entered the super-mini market in 1976 with the Volkswagen Polo, a stylish and
spacious three-door hatchback designed by Bertone.
The Volkswagen New Beetle concept, especially in North America.

In 1994, Volkswagen unveiled the J-mays-designed Concept One, a "retro"-themed car with a
resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in
opposition to VW management, who felt it was too backward-looking. Management could not
deny the positive public response to the concept car and gave the green-light to its development
as the New Beetle. The production car would be based on the Golf rather than the Polo, because
the Polo frame was too small for the car to pass crash test standards in the U.S. It has been quite
popular in the North America and is now gaining in the EU.

Volkswagen group — the Volkswagen Bora (the sedan, still called Jetta in the USA), New
Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, it was
beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo
156 and runner-up Audi A6.

In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi),
Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group
portfolio.

Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195—a
dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to
close out the decade with the release on several new vehicles worldwide and a barrage of
advertising.

Electric and alternative fuel vehicles:

Clean diesel

A Blue Motion Volkswagen Polo

Volkswagen has been selling clean diesel-powered engines for the European market since
2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and
it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher
than gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with
clean diesel technology. Volkswagen is also developing hybrid technology for diesel-electric. A
VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show,
which has a fuel economy of 70 mpg (3.3 liters per 100 km).

Electric vehicles:

Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen
boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles.
There will definitely be compact hybrid models, such as Polo and Golf, and without any great
delay”, with gasoline and diesel engines.

Volkswagen Group owns nine active automotive companies:

1. Audi: 99.55% ownership; the Audi marque is the sole active brand of the former Auto
Union, bought from Daimler-Benz on 30 December 1964.

2. Automobili Lamborghini:- 100% ownership by Audi AG; company was bought in June
1998.

3. Bentley Motors Limited:- 100% ownership by Volkswagen AG; the company (at the time
known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28 July 1998 from
Vickers, but did not include the 'Rolls-Royce' brand name. The Rolls-Royce marquee was
subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.

4. Bugatti Automobiles:- 100% ownership via the Volkswagen France subsidiary of

VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to
the Bugatti marque.

5. SEAT:- Initially cooperation agreement with Audi AG, 51% (1986) and 100% ownership
by the VW Group since 1990, and was the first foreign subsidiary in the VW Group.

6. Škoda Auto:- 100% ownership since 1999.

7. Volkswagen Passenger Cars:- 100% ownership.

8. Volkswagen Commercial Vehicles (VWCV) or 'Volkswagen Nutzfahrzeuge' (VWN)

(German) — 100% ownership; started operations as an independent entity in 1995.
 VWCV/VWN is in charge of all commercial vehicle developments within the Group and
has control over Scania and is a shareholder in MAN AG.

9. Scania AB:- 70.94% of voting rights as at 27 February 2009.

Volkswagen in India

Recently Volkswagen paved the way for sustainable market activities in India. With the
investment agreement signed at the end of 2006 the brand sets a new course that unites two
success stories – Volkswagen and India.
Volkswagen AG has built a new production plant in Pune in the Indian state of Maharashtra.
With investment totaling some 410 million euros, a full production plant with a press shop, body
shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial
park near Pune. The German brand and Europe’s largest automotive manufacturer will be
entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be
developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian
market offering all the features of a genuine Volkswagen.

For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market
up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger
Cars, the Group has established a separate Indian sales company in 2007, initially for
Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” registered in
Mumbai will distribute locally manufactured and imported vehicles in India.

Thus, Volkswagen can bring one of its upper-premium sedan as the first locally produced vehicle
to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its bestseller. The
Passat has become the very image of automotive progress, representing what “Made in
Germany” means. This long-term success is confirmed by numerous accolades from experts,
journalists and customers who have put the car through its paces in recent months. This image is
characterized by vehicle size, drive technologies, safety features such as airbags, ABS and ESP
in addition to quality details including galvanized bodies. Imported vehicles such as the premium
Sports Utility Vehicle Touareg will complement the range
 Volkswagen India Hierarchy Structure

Hierarchy Structure for Volkswagen Group Sales India Private Limited

Products Profile for models available in India:
Passat

Technical specifications

Vehicle Model Passat TSI 1.8 Exclusive

Engine Type 4-cylinder , 4 valves Per Cylinder

Displacement(liters/cc) 1.8/1798cc

Max. Torque(NM at RPM) 250/1500-4500

Transmission 6 speed manual shift gearbox

Max. Power output kw(PS) @ RPM 118(160) at 4500

Emission Category BS 4

Price(Rs) 1,920,777

Jetta

Technical specifications

Vehicle Model Jetta 1.6 L (Petrol) Jetta 2.0 L TDI (Diesel)

Trendline Trendline/ Comfortline

Engine Type 4-cylinder , 2 valves 4-cylinder , 4 valves Per

Per Cylinder
Cylinder

Displacement(liters/cc) 1.6/1595cc 2.0/1968cc

Max. Torque(NM at RPM) 148/3800 250/1500

Transmission 5speed manual 5 speed manual Gearbox

Gearbox

Max. Power output kw(PS) @ RPM 75(102) at 5600 81(110) at 4000

Emission Category BS 4

Price(Rs) 1,299,000 1,426,171/1,592 ,311

The Passat 1.8 L TSI is priced at Rs 19.20 lakh (ex-showroom New Delhi) while the Jetta 2.0 L
diesel Comfortline is priced at Rs 15.92 lakh (ex-showroom New Delhi).The Passat comes with
the TSI Petrol Engine.

This engine from Volkswagen is known for maximum power with minimum fuel consumption.

TSI engines are compact, high-powered and use less fuel thereby offering an enjoyable and
involving drive, while cutting fuel consumption and CO2 emissions.

Volkswagen is largest car-maker in Europe and has a presence in 150 countries world-wide.

Touareg

Technical specifications

Vehicle Model Touareg 3.0 TDI

Engine Type 6-cylinder , 4 Valves

per Cylinder

Displacement(liters/cc) 3.0/2967

Max. Torque(NM at RPM) 550/2000-2250

Transmission 6 speed Automatic

Max. Power output kw(PS) @ RPM 176(240)@4000

Emission category BS 4

Price(Rs) 5,185,000
The Touareg is offered in two-wheel drive configuration. Four-wheel drive can be added as
option. It is available in one variant V6 TDI which is powered by a 3.0-litre V6 Turbo Diesel
Direct Injection (TDI) V6 diesel engine that cranks out an impressive 225 bhp of power at 4000
rpm and 500 Nm of torque at 1750 rpm. The engine is mated to a 6-speed automatic transmission
that delivers good fuel economy. The transmission also features a driver-oriented Dynamic Shift
Program (DSP) that helps the driver to shift gears smoothly.

The SUV is capable of speeds of up to 200km/h. The V6 diesel accelerates from 0-100 km/h in
just 9.9 seconds. It delivers impressive performance, and a smooth ride coupled with decent
mileage.

The Touareg possesses independent front and rear double wishbone suspensions with steel
springs and anti-roll bars. The handling is hugely responsive and seats are comfortably fitted to
offer a great comfort over long drives.

Beetle

Technical Specification

Vehicle Model Beetle 2.0 Auto

4-cylinder , 2 Valves per

Engine Type Cylinder
Displacement(liters/cc) 2.0/1984

Max. Torque(NM at 172/3200

RPM)
Transmission 6 speed Automatic

Max. Power output 85(115)@5400

kw(PS) @ RPM
Emission category BS 4
2,045,416
Price(Rs)
Powered by a 2.0-liter Petrol
Engine, Beetle is a smooth, Quiet and a refined car, It boasts 116bhp @ 5400rpm which feels
quite sluggish at the initial ratios. 172 Nm Torque @ 3200 rpm gives unmatched city ride and It
delivers good power in city even at low RPMs.
Six speed Auto Tip-tronic does duty in beetle, Gears shifts are silky smooth helping to provide a
comfortable drive.
The Volkswagen New Beetle is real fun to drive, the steering felt to be tight which makes city
driving un-comfortable but still its quick and direct. If you plan to perform a drag race, Then
"Please stay away from me" is what beetle told us when we tried to push it hard. Handling
around corners is excellent and all around disc brakes perform the job well.
Beetle takes up any good city roads & speed breakers easily, also it rides well on bumpy roads
too. But avoid the potholed roads due to the low ground clearance of 120mm, there are all
possibilities to get this Bug hurt. The tyres of beetle gives great ride comfort around corners and
195/65 R15 Pirelli is a nice select.

Pheaton

Vehicle Model Phaeton 3.0 TDI

6-cylinder , 4 Valves
Engine Type
per Cylinder

Displacement(liters/cc) 3.0/2967

Max. Torque(NM at
370/3500
RPM)
6 speed Automatic
Transmission
with program
Max. Power output
206(280)@6250 This elegant machine comes in the
kw(PS) @ RPM
same platform as that of Audi
Emission category BS 4 A8.The main competitor of phaeton
Price(Rs) 7,629,128 is obviously Audi A8 itself. BMW 7
series and Mercedes Benz s class are
competitors outside the family.

Phaeton is a D+ segment sedan which is powered by 3600cc, V6 petrol

engine with maximum power of 280 bhp at 6250 rpm and a Maximum Torque 370 Nm at 3500
rpm. It comes with 6 speed automatic transmission and having a top speed of 240 Km/h.

Phaeton comes with a fully handcrafted interior. Volkswagen has included almost all luxurious
features including AC with Dual Zone Climate Control, Sun Roof, Auto Viper, Auto Headlamp
and 8 Airbags.

This Bombproof Luxury is marketed in India for a price ranging from 75 to 80 lakhs. Even
though the car is slightly pricey phaeton is doing good on Indian roads.
Polo

Polo 1.2 L (Petrol) Polo 1.2 L (Diesel)

Vehicle
Trendline/Comfortline/Hi Trendline/Comfortline/Hig
Model
ghline hline
Engine type 3 cylinder 3 Cylinder

Displcement
1.2/1198cc 1.2/1199cc
(Liters/cc)
Max. Torqur
110/3750 180/2000
(NM at rpm)

Transmission 5 speed manual Gearbox 5 speed manual Gearbox

Max. Power
output 55(75)@5400 55(75)@4200
kw(PS)@rpm
Emission
BS 4
category

Price(Rs) 442000, 493000, 582500 542000, 592500, 682500

A true leader in the hatchback segment of the Indian car industry when it comes to space, style,
comfort, safety and fuel efficiency. There are 7 variants such as 1.2L 75 bhp Petrol
Trendline, 1.2L 75 bhp Petrol Comfortline, 1.2L 75 bhp Petrol Highline, 1.2 L 75 bhp TDI
Diesel Trendline, 1.2L 75 bhp TDI Diesel Comfortline and 1.2L 75 bhp TDI Diesel
Highline and 1.6 Petrol (which still has some time to hit the showrooms country wide).
The 5-speed manual gearbox transmits power with short and accurate shifts. Height-
adjustable driver seat, ABS and Remote Keyless Entry are some of the features amongst
others.
 Reasons for

launching Polo in

B+ Segment
 A na

“Y T D
Av e o
G e tz i2 0 F a
U va

Y T D 0 9 2 ,9 1 6 3 ,11 8 9 ,2 9 0 1 ,
YTD - Year to date 12 MR – 12 month rolling
(Start of the year till May) From June- May

Y T D 1 0 2 ,11 2 1 ,6 0 72 4 ,3 8 13 ,
The passenger car sales are still boosting even after the prices of the cars have gone high. With
the increase in the raw materials and hardening interest rates the prices of the cars have gone up
between 2 and 5 per cent. Every car manufacturers have hiked their price for all the models. But
looks like all these factors have not affected as the month of March saw the sales of passenger
car rose on an average by 28 per cent.

India’s largest car manufacture, Maruti Suzuki’s domestic sales recorded an increase of 70 per
cent by selling “Swift and Ritz” 89,420 units against the 52,648 units last year even though
there market share has fallen considerable from 62.18% to 40.92% for the above mentioned cars.
Another leader in auto market, Hyundai Motor India also saw a good sales growth of more than
100 per cent in domestic passenger car with sales 25,988 units in May 2010, compared to 12,408
units last year for “i-20 and Getz”. The domestic sales of General motors also rose by 7 per cent.
It was a Spark-ling victory for General Motors India with smashing sales of Chevrolet Spark
from the small car segment. The model was sold in 2250 units in May and the overall sales of
GM models like Chevrolet Aveo Uva, Chevrolet Optra, Chevrolet Captiva and MUV Chevrolet
Tavera too saw a good sales report. Now the company plans to roll out another small car for
India which will cost lower than Spark.

Another reason for car sales boost is launch of new models this year. With so many models from
almost all the car makers has given a good push to the auto sales. The export sales also did not
lag behind. Maruti’s export sales figure registered a 41 per cent growth and the credit line goes to
the its latest compact model Maruti Swift from A2 segment and recently launched Swift Dzire
from A3 extension.

The export sales of Hyundai also faced an impressive figure of raise in 57 per cent at 15,751
units. The company was able to hold on with the strong figures even after the higher interest
rates. Recently launched i10 received good response from the buyers and soon the company will
introduce the diesel version of i10.
Percentage of market share for B+ - Segment covering calendar year
“2009 and 2010”

60.00%

50.00% Source: Volkswagen India sales office

The above bar-chart gives a complete detailed analysis of individual cars in b+ segment
and how much market percentage they are holding. It is clearly visible from the figure
that Maruti swift is the market leader but have lost the ground to Hyundai’s i-20 and
various new entries in the market.

40.00%
This figure also gives us an insight of how well the new entries are doing in the market.

30.00%
.

Source – Volkswagen NSC, Mumbai Fig-1 Figures till the month of March

Fig-2

From the above representation it is shown that the Indian automotive industry showed a
comprehensive growth of 27.17%. Figure two however shows a complete breakup of industry on
the basis of Utility Vehicle and the Passenger car segment. Also it shows what percentage it
holds in the total market share and its growth with respect to Year 09.
Complete Technical and Feature specification
The above specifications show us that after a detailed study of the B+ segment it was decided
that “POLO” should be kept as competitive and similar to its competitors as possible.
 Market Break up for Sedan and Hatch Back Segment

Fig-1

Fig-2 Fig-3

Source- Volkswagen NSC, India

German segment
Coding Indian segment Coding
A000 HB A-
A00 HB A,B,
A0 HB B+
A0 NB C
A NB Lower D
B NB Upper D
C NB E
D NB E

Fig 1 – Shows us a detailed breakup of “Sedan” segment, its market share and the growth it
posted over calendar year 09

Fig 2 – Shows us a detailed breakup of “Hatch Back” segment, its market share and the growth
it posted over calendar year 09

Fig 3 – Shows market break up between “Sedan segment” and “Hatch Back segment”
considering market as hundred percent and the growth it posted as a combined segment over
calendar year 09
 Competitors Set For VW Polo

Hyundai i-20

Maruti Swift

Ford Figo
Polo

Fiat Punto

Brands VW Polo Ford Figo Fiat Punto Hyundai i-20

Vitals

Engine 3-cyls in Line 4-cyls in line 4-cyls in line 4-cyls in line

74 bhp @ 71 bhp @ 67 bhp @ 79 bhp @
Power 5400rpm 5400rpm 6000rpm 5200rpm
11.2 kgm @ 10.3 kgm @ 9.76 kgm @ 11.4 kgm @
Torque 3750rpm 4000rpm 2500rpm 4000rpm
Transmissi 5 speed 5 speed 5 speed
on manual manual manual 5 speed manual
Weight 1030 kg 1055 kg 1140 kg 1065 kg
0-
100km/hr 16.50 sec 22.09 sec 18.16 sec 15.21 sec
Fuel
Efficiency 10.9 kpl 11.25 kpl 9.7 kpl 11.2 kpl
 Facts Which Make Polo The Best Buy In Its Segment

1. Interiors
• A bend of neat interiors along with ample storage space, in the form of big glove
box, door pockets and very generous boot space.
• Plastic quality is the best among its segment
• Interior upholstery the best in its class
• Good headroom
• Gear shift knob and interior handles in chrome

2. Exteriors
• Good sporty design
• Innovative Boot
opener
• Chrome strip in
front grill
• Green tinted heat
absorbing glass
• Galvanized body with 6 years anti-corrosion warranty
• 3 years anti color fade warranty
• Rear sporty spoiler standard
•
3. Technical
• Best suspensions among its segment
• Gear shift the best in its class
• Great handling at corners
 Source- Auto Car (April-10),
Zig Wheels (May-10),
Polo VW Brochure
Vento
 Source- Business Standard motoring.Com

The wait for the Vento is finally coming to an end. Come July 6 and Volkswagen will launch the
Vento in India, taking this Polo based sedan straight into the territory of the recently launched
facelifted Hyundai Verna Transform and Honda's chart busting City.

The Vento is likely to start above Rs 7 lakh with the top end versions going above Rs 9 lakh.
With 50 mm of extra wheelbase over the Polo, it means there is more space on the inside and
those who cribbed about the Polo's lack of rear legroom might appreciate its sedan sibling.

Motive power for the car will come from two engines - a diesel and a petrol. While the petrol
powered motor will be a 1.6-litre engine, producing 105 bhp (the same as the one on the BSIII
Jetta), the diesel motor might be a 1.6-litre, common rail four-cylinder engine with 105 bhp.
Incidentally, this engine is also found in the Polo Cup Racers in India that are tuned to produce
130 bhp. Volkswagen might offer both manual and automatic options, the latter being a six-
speed DSG gearbox.

On the inside there is wee bit more space, better seats and more shoulder and headroom.
Features-wise, the car has new controls on the dashboard and a new design steering wheel with
more chrome inserts all around than the Polo.